Solana’s Massive Growth in Total Value Locked
Ethereum currently dominates the DeFi and smart contract niches in terms of Total Value Locked (TVL). However, other chains like Solana, Avalanche, and Polkadot are competing to prove themselves as worthy contenders to the throne. Solana, in particular, has seen significant growth, with a 14% increase in TVL over the past month.
The Rise of Solana’s TVL
Solana’s growth in TVL can be attributed to an increase in the TVL of protocols for staking and yielding based on Solana. In July alone, Solana’s TVL grew by $45 million, representing a 14.4% increase. Currently, Solana sits at the 9th position in terms of TVL locked in all chains, with a TVL of $320.07 million.
Decline of Ethereum and Binance Smart Chain
While Ethereum still holds the highest TVL of $23.3 billion, it has seen a decline of 13% over the past month. Similarly, Binance Smart Chain (BSC) experienced a monthly loss in TVL, dropping by 4.6% to $3.3 billion.
Potential for Solana in 2023
Solana’s increase in TVL can be attributed not only to the TVL growth of protocols but also to a surge in price at the beginning of July. The price of Solana went from $18.9 to $27.4, reaching a market cap of $11.81 billion. However, user activity on the chain and its market cap dropped towards the end of July, highlighting the volatility of the crypto market. Currently trading at $24.85, experts predict Solana could surge above $30 by the end of the year.
Hot Take
Solana’s impressive growth in TVL and price highlights its potential as a strong competitor to Ethereum. With its ability to attract assets and its market cap reaching billions, Solana is proving to be a force to be reckoned with in the crypto space. Keep an eye on Solana as it continues to make waves and potentially reach new heights in 2023.
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