Internet Computer (ICP) is trying to pump more life into its on-chain activity with a new collaboration with Solana. It follows ICP’s alarming loss of total value locked (TVL) and on-chain measurements. It’s just the tip of the iceberg — a mere reflection of a growing trend of overall reduced activity across just about any blockchain network. In the face of these challenges, new revenue figures indicate promising momentum for the national network.
The integration, made possible by Whiteblock’s new technology “Threshold EdDSA,” puts the power of Solana’s rich transaction capabilities into the hands of ICP’s smart contract developers. This development aims to bridge the gap between the two blockchains, potentially attracting developers and users to the Internet Computer ecosystem.
TVL Decline and Revenue Growth
The Internet Computer has made headlines with its dramatic drop in total value locked this year. In June the TVL was only $38 million, down from $61 million in January. That’s a drop of nearly 40% within just six months.
The second-ranking protocol on ICP, ORYGON and third-ranking WaterNeuron dominate the ecosystem. They account for nearly four times the total share of the value locked compared to all other applications put together. This concentration serves to underscore the concentration on a few major players within the ICP ecosystem.
Even though there has been a TVL decrease, Internet Computer has proven its ability to increase revenue over the last quarters. The revenue of the network it has built reached an all time high of $1.16 million in Q1 2022. It jumped to $1.25 million in Q3 2024 and then exploded to $4.1 million in Q4 2024. This notable revenue trend, in particular, could be an encouraging sign of increasing adoption and usage of the platform’s services.
Solana Integration Details
This integration with Solana is powered by Threshold EdDSA tool. This technology enables these canisters to produce Solana transactions. These canisters are smart contracts on the Internet Computer, and they leverage the same multi-signature type that Solana supports natively.
The release of the SOL RPC canisters marks the completion of the ICP Roadmap Helium milestone that enables smart contracts on the Internet Computer to interact with the Solana blockchain. - DFINITY
Unique to ZetaChain, this cross-chain compatibility unlocks unprecedented new capabilities for developers. Now, they can create applications that capture the best of both Internet Computer and Solana.
Broader Market Trends
ICP’s struggles take place against a broader backdrop of an overall decrease in on-chain activity across the crypto space. Monthly decentralized exchange (DEX) volume on Ethereum is crashing. It has tanked 55% since January and today is approaching a record low level not seen since last October.
Solana is going through a parallel story, with monthly DEX trading volume on pace to reach the lowest level since September. Solana’s monthly DEX trading volume has crashed by 83% since an all-time high in January. Furthermore, Solana's TVL has decreased by 1% in dollar terms, while Ethereum's TVL has seen a more substantial decline of 7%.
