Albert Barnes Commentary Psalms 74:7

"They have set thy sanctuary on fire; They have profaned the dwelling-place of thy name [by casting it] to the ground." — Psalms 74:7 (ASV)

They have cast fire into your sanctuary - Into the temple to destroy it. Literally, “They have cast your sanctuary into the fire.” The meaning is that they had burned it down. This was actually done by the Chaldeans (2 Kings 25:9; 2 Chronicles 36:19).

They have defiled by casting down the dwelling-place of your name to the ground - The place where your name dwelt or was recorded (Exodus 20:24); that is, the place where God’s name was known, or where he was worshipped. The literal meaning is, “To the earth they have defiled the dwelling of your name?” The idea is that they had defiled or polluted the temple by throwing it to the ground, by making it a heap of ruins, by making it indistinguishable from common earth.