Technical Upgrades Drive Solana TVL Above $10 Billion

Solana's Total Value Locked (TVL) has surged above $10 billion following a technical upgrade implemented on July 23, 2025, which increased the network's compute unit limit per block by 20%, from 48 million to 60 million units. 

This adjustment, part of SIMD-0256, has contributed to improved transaction processing and reduced congestion, supporting a rise in DeFi activity that pushed TVL to $12.26 billion as of writing, with a 2.60% increase over the previous 24 hours, according to DefiLlama.

Timeline of Solana's TVL Growth

Solana's TVL began its recent climb in mid-July 2025, amid a broader recovery in cryptocurrency markets. By July 21, 2025, the TVL crossed the $10 billion mark, aligning with a 7% daily increase in the SOL token's market capitalization to about $104 billion. The following day, TVL reached between $10.3 billion and $10.45 billion, as SOL traded above $200 for the first time in five months, posting weekly gains of 25%.

This growth has continued, with TVL stabilizing above $10 billion. The surge represents a six-month high for Solana's DeFi ecosystem, outpacing some of its competitors in terms of TVL expansion. Key metrics include a 3.89% seven-day increase in stablecoin market capitalization on Solana, reaching $11.667 billion, with USDC accounting for 70.98% of the total. Daily decentralized exchange (DEX) volume stood at $2.217 billion, while perpetual futures volume reached $1.015 billion over the same 24-hour period.

On-chain activity has also intensified, with 2.74 million active addresses and 83.69 million transactions recorded in the last 24 hours. SOL's price was $191.79, contributing to a market capitalization of $103.192 billion. These figures indicate sustained user engagement, driven in part by increased speculation around Solana exchange-traded fund (ETF) approvals, with odds estimated at over 99%, alongside rising DeFi and non-fungible token (NFT) participation.

Details of the July 23 Technical Upgrade

The upgrade on July 23, 2025, enacted through SIMD-0256, raised the compute unit (CU) limit per block to 60 million. Compute units measure the computational resources required for transactions on Solana, and this increase addresses previous bottlenecks from high-demand activities, such as memecoin trading surges earlier in the year. The change has increased average throughput to approximately 1,700 transactions per second (TPS), potentially reducing fees and alleviating network congestion.

Solana's architecture relies on a proof-of-history consensus mechanism combined with proof-of-stake, enabling high-speed processing. The CU adjustment enables more complex transactions per block, thereby enhancing scalability for decentralized applications (dApps). Post-upgrade, DEX volume on Solana hit $1.4 trillion in July 2025, marking a 140% monthly increase.

Additional proposals are under discussion, including SIMD-0286, which could further increase the CU limit to 100 million by the end of 2025, representing a 65% to 66% increase from pre-upgrade levels. This would build on Solana's efforts to compete with networks like Ethereum, which recently increased its gas limit to 45 million units.

Related concepts in blockchain scalability include sharding and layer-2 solutions, though Solana's approach focuses on single-layer optimization. For instance, the network's Turbine protocol for block propagation and Gulf Stream for mempool management complement these CU enhancements, reducing latency and improving data relay.

Broader Factors Influencing the TVL Surge

While the TVL surpassed $10 billion just before the July 23 upgrade, the technical changes have helped maintain momentum by bolstering network performance. Improved scalability attracts more DeFi protocols and capital inflows, as seen in the ecosystem's recovery from earlier 2025 market corrections.

Other elements include institutional interest and protocol expansions. Solana's DeFi TVL growth is tied to rising on-chain metrics, including perpetual futures trading and stablecoin dominance. Concepts like tokenomics play a role, where SOL's supply dynamics and staking rewards influence investor behavior.

Additional upgrades mentioned in recent discussions include the Alpenglow protocol, which aims for transaction speeds with block finality of 100 to 150 milliseconds, as well as enhanced data relay. Though details are preliminary, it aligns with Solana's focus on low-latency environments. Firedancer, a third-party validator client, and epoch upgrades contribute to broader scalability. Epochs in Solana refer to fixed periods for staking and reward distribution, typically lasting about two days. These advancements could support price projections, with some estimates placing SOL at $500 to $700 by year-end, based on current trends.

In comparison, Ethereum's gas limits and layer-2 rollups address similar congestion issues, but Solana's monolithic design prioritizes speed over modularity. This has positioned Solana as a hub for high-frequency trading in DeFi, including perpetuals and options.

Conclusion

Solana's TVL exceeding $10 billion demonstrates the network's capacity to handle increased DeFi activity through targeted upgrades, such as SIMD-0256, which expanded compute resources and throughput. Combined with robust on-chain metrics, such as $2.217 billion in daily DEX volume and 1,700 TPS, the ecosystem shows effective scalability for dApps and trading. 

Ongoing proposals, such as SIMD-0286, further outline Solana's technical roadmap, emphasizing precise enhancements in block processing and resource allocation.

Frequently Asked Questions

What caused Solana's TVL to surpass $10 billion in July 2025?

Solana's TVL crossed $10 billion on July 21, 2025, driven by a 7% daily market cap increase and SOL price gains above $200, with the July 23 upgrade reinforcing growth through a 20% compute unit limit increase.

What is SIMD-025, and how does it affect Solana?

SIMD-0256 is a Solana upgrade from July 23, 2025, that raised the compute unit limit per block from 48 million to 60 million, improving transaction throughput to 1,700 TPS and reducing congestion for DeFi users.

How has Solana's on-chain activity changed since the upgrade?

Following the upgrade, Solana reported 2.74 million active addresses, 83.69 million daily transactions, $2.217 billion in DEX volume, and $1.015 billion in perpetuals volume as of July 28, 2025, indicating heightened DeFi engagement.

Sources:

• DeFiLlama - Solana Chain Metrics: https://defillama.com/chain/solana 
• CoinDesk - Solana TVL and Upgrade Analysis: https://www.coindesk.com/markets/2025/07/24/solana-tvl-surges-past-10b-amid-upgrade
• The Block - Solana Network Upgrades and DeFi Growth: https://www.theblock.co/post/307000/solana-upgrade-boosts-tvl-to-10b