Solana’s Total Value Locked (TVL) Surges to $338.82 Million
Solana’s total value locked (TVL) reached $338.82 million on Monday, its highest level since the beginning of the year, according to DefiLlama data. TVL is a metric used to measure the amount of money circulating in a network’s DeFi applications. Over the past 24 hours, SOL’s TVL has increased by approximately 4.15%, rising from $324.64 million on Sunday to $338.82 million on Monday. This rise can be attributed to popular Solana-based projects like Drift, marginfi, and Solend, among others.
The native SOL token of the Solana network has also experienced its strongest week since mid-July. The token has seen a 29% increase over the past week and a 39.08% surge from its September low, as reported by CoinGecko. At press time, SOL is trading at $24.42, indicating a 65% jump from its lowest price in 2023.
However, these numbers are still far below their peak during the bull market. In November 2021, Solana’s TVL skyrocketed to just above $10 billion before plummeting to $210 million in January 2023.
FTX Estate and SOL Liquidation
Concerns have arisen regarding the potential impact on SOL’s price after the FTX estate was approved to sell its crypto holdings. The estate reportedly holds around $1.2 billion worth of SOL, with approximately 22 million unlocked tokens valued at around $400 million that can be sold. This represents nearly 4% of SOL’s total supply.
In addition, there are currently 40 million to 44 million staked tokens, worth approximately $860 million, and another $17 million worth of SOL tokens expected to be unlocked each month for the next four years.
Solana was one of the projects heavily affected by the collapse of FTX. The Solana Foundation had a significant financial connection with FTX and held assets totaling less than 1% of its funds with the platform before customer withdrawals were halted. The foundation also owned shares in FTX Trading LTD and held tokens from Project Serum, a decentralized exchange on Solana.
Hot Take: Solana’s TVL Reaches New Highs, but Concerns Loom
Solana’s total value locked has reached a new high, signaling renewed interest and activity in the network’s DeFi ecosystem. The surge in TVL can be attributed to popular Solana-based projects, driving up demand for the native SOL token as well. However, concerns arise as the FTX estate is approved to sell its large holdings of SOL, potentially impacting its price. With a significant portion of SOL’s supply unlocked and available for sale, market dynamics could shift. It remains to be seen how this liquidation will affect Solana’s overall market performance in the coming weeks.
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