Total Value Locked (TVL) on the SOL chain falls by more than 30%.
The current TVL on Solana Chain is $423.68 million.
The fall was triggered after Binance backed out from the acquisition deal.
In the last 24 hours, as news of FTX's collapse has caused shockwaves across the crypto world.
As per reports, Solana's TVL has fallen to $423.68 million, down 32.4% in the last 24 hours, a far way from its all-time high (ATH) of $10.17 billion on Nov. 9, 2021.
TVL is the total value of all assets locked into DeFi protocols. As TVL rises, more coins are deposited within the DeFi protocols, indicating positive sentiment. Meanwhile, a declining TVL indicates that investors are withdrawing funds from the ecosystem for various reasons.
The fall in TVL went as far as 51.7% in the last 24 hours, however, it had partially corrected prior to the writing of this article.
Marinade Finance, a Solana-based liquid staking protocol, has witnessed the greatest loss in TVL on the chain, falling 35.1% to $115.79 million in the last 24 hours.
Other key protocols on Solana have witnessed similar drops in the previous 24 hours, with Raydium, an automated market maker, down 34.25%. Lido, a liquid staking protocol, is down 43.13%, and Solend, a lending protocol, is down 63.07%.
Other leading blockchains have also witnessed losses in TVL over the same time period, with ETH down 10.59%, BNB smart chain down 9.68%, and Tron down 8.84%.
Sam Bankman-Fried (SBF), the founder of FTX and crypto hedge fund Alameda Research, was an early investor in Solana. However, Alameda Research and cryptocurrencies exposed to SBF's companies have suffered the most.
Solana's token has also decreased significantly in comparison to its competitors, plummeting 28% to $15.3 in the last 24 hours.
The token briefly rose following news that Binance could acquire FTX but plunged as Binance backed out of the deal, citing charges of consumer funds mismanagement and a regulatory investigation.
Read also: Singapore Government Involved Indirectly In Binance's FTX Bailout
