Solana’s TVL Drops by 98% | What Lies Ahead For Solana Blockchain?

The year is about to end and this had not been so great for the 

Solana blockchain network. According to recent reports, Solana’s total value locked (TVL) on its DeFi protocols has dropped by 98%.

 The total value locked or TVL includes all the native tokens of the blockchain deposited in different functions of the network including staking, liquidity pools, and lending pools. 

According to the on-chain data, the total TVL of Solana peaked thirteen months back in Nov 2021 by crossing the mark of $10 billion. But since then, the crypto market has undergone a severe bloodbath and Solana had to suffer the worst of its impacts. 

Presently, the TVL for Solana is hovering close to $214 million which is only 2% of its all-time high. Marinade Finance has the maximum value of Solana tokens locked in its liquid staking platform based on its blockchain. Marinade Finance holds 34.57% or $74.32 million of the total TVL followed by Orca, Raydium, and Lido with $32.22 million, $29.77 million, and $27.93 million respectively. 

Is Solana Dead?

FTX was one of the most prominent holders of Solana tokens and its unforeseen crash has shaken this blockchain to the core. When FTX dumped Solana that worth more than $500 million in the market, a series of panic selling started in the market. The mass dump of the tokens has pushed its prices to the lowest but the project is not dead at all. 

Solana is a strong project that solves the scalability issues of Ethereum effectively. While the market is down, the community is focusing on building an ecosystem of powerful decentralized applications. The extreme throughput rate of the Solana blockchain network is bound to make this a widely popular foundation of upcoming DeFi projects. It is only a matter of time before Solana recovers and regains its true value.

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