Sanctum Q2 2026: Protocol TVL Hits 16.64M SOL All-Time High as USD Revenue Falls -39%

Sanctum CLOUD$0.069-0.2% published its Q2 2026 quarterly report on July 17, recording a new SOL-denominated TVL all-time high of 16.64M SOL, marking the 11th consecutive quarter the protocol has grown its staked SOL base. Per the report, which cites DefiLlama as the source, that is an 8.2% gain from 15.44M SOL at the end of Q1 and corresponds to roughly $1.28 billion at current SOL prices, confirmed independently by DefiLlama.

USD-denominated revenue moved in the opposite direction: the report puts Q2 at $0.88M, down 39.7% from Q1's $1.46M. In SOL terms, the gap shrinks to 1.1%: 11,287 SOL in Q2 against 11,408 SOL in Q1. SOL averaged roughly $78 through the quarter, down approximately 37% year-to-date per the report, mechanically compressing the fiat value of fees collected in SOL.

Sanctum Reaches 2.72% of Circulating SOL as Competitors Shed Assets

The quarterly report shows Sanctum now accounts for 2.72% of all circulating SOL, up from 2.02% a year ago and 1.04% two years prior. That share grew even as two of its main competitors contracted: Jito JTO$0.556+4.9% (Jito) saw approximately 2.61M SOL in outflows during Q2, and Marinade MNDE$0.027+2.4% (Marinade) shed roughly 0.40M SOL. Sanctum's own partner LSTs gained around 1.17M SOL over the same period.

The report also notes two new partner LSTs joined this quarter: Raiku (Raiku)'s rkuSOL (Raiku is a Solana blockspace auction protocol), which had accumulated 95,977 SOL by July 2, and dawnSOL from Dawn Labs, a Japan-based Solana validator operator.

Infinity (INF) APY Outperforms Benchmark by 11%; Revenue Nearly Triples QoQ

Sanctum's pooled liquid staking product, INF (INF), averaged a 6.22% APY during Q2, which the report describes as 11% above the comparable benchmark of major Solana LST yields. Per the report, INF's AUM declined slightly from approximately 2.08M SOL at the start of Q2 to 2.03M SOL by the end, a dip of roughly 51,939 SOL.

The report's product revenue table shows INF as the quarter's standout. Revenue from Infinity grew 145.2% in SOL terms quarter over quarter, to 1,621 SOL, lifted by INF V2, which launched in March 2026 with per-0.4-second yield streaming and tighter swap rates between Sanctum partner LSTs. Sanctum Stake revenue fell 7.8% QoQ to 8,705 SOL, and Reserve & Router, the most volume-sensitive segment, declined 26.6% to 961 SOL as bear-market conditions reduced capital rotation across Solana DeFi.

Sanctum App: 8,465 Users and 38,000 SOL Deposits, No Token Incentives

The Sanctum App, which launched on iOS and Android in March 2026, had reached 8,465 registered users by the time of the report, acquired entirely through the Solana Seeker integration with no token incentives. The report shows approximately 38,000 SOL in deposits, with the largest single user having deposited over 2,500 SOL.

In the quarterly report, CEO FP Lee identifies conversion as the primary bottleneck: fewer than 20% of users who register go on to make a first deposit. Among those who do deposit, cohort retention is stronger, with around 40% maintaining or growing their balances month to month. The protocol passes 100% of staking yields through to app depositors; Sanctum charges no additional cut on app-layer yields beyond its standard 2.5% fee on partner LST staking rewards.

No Programmatic Buybacks for CLOUD; Treasury Stands at $5.84M

The report puts the CLOUD (CLOUD) market cap at $7.60M for Q2, a 63.3% decline from Q1. The report is explicit about one contributing factor: Sanctum has declined to implement programmatic token buybacks despite sector trends.

Per the quarterly report, the protocol treasury stood at $5.84M as of June 2026, comprising $3.69M in stablecoins and $2.16M in SOL and LSTs (excluding CLOUD holdings and loans to market makers). No founder has sold tokens outside one disclosed OTC deal with AppWorks, which still holds its position.

SIMD-550 Flagged as a Risk to Staking Yield Revenue

The Q2 report flags SIMD-550 as a near-term risk, describing a proposal that would double Solana's disinflation rate from -15% to -30% per year, pulling the terminal 1.5% inflation rate forward from H1 2032 to H1 2029. Per the report's risk analysis, that schedule would compress nominal staking yields from roughly 5.84% today toward approximately 4.34%, then 3.00%, then 2.25% over three years.

Since Sanctum takes 2.5% of staking rewards as its fee on validator LSTs, faster yield compression reduces the absolute SOL earned per unit of TVL. The report argues partial mitigation: per its analysis, SIMD-550 is designed to reduce SOL emissions by approximately 18.9M SOL over six years, and a stronger SOL monetary profile from reduced issuance could offset yield compression through price appreciation and continued TVL growth.

One note on Q1 comparisons: the Q1 figure of 11,408 SOL included a 4,096 SOL fee generated from an exploit at Step Finance STEP$0.00012-0.5% (Step Finance) that Sanctum subsequently returned in full, which the report acknowledges inflated the Q1 USD total.

The full Q2 2026 report is available at sanctum.so/quarterly.