Solana TVL Sees Sharp Decline, Reaches 2022 Low
17 May 2022 - 6:00PM
NEWSBTC
When Solana’s price hit new lows near $54, the total value locked
(TVL) for the token also declined to a historical low. According to
data from Defi Llama, the token’s TVL has been on a steady decline
since November 2021. In that month, it reached an all-time high of
$15 billion but then lost momentum and went down to $4.34
billion. Solana’s TVL continued to plummet in the third week
of May due to bearish trends within this market that have seen
declining interest from investors. Related Reading | Ripple (XRP)
Price Picks Up As SEC Legal Showdown Drags On With its price
struggling to find footing, it’s been one of the best-performing
crypto projects in recent months. However, the research says that
Solana has lost 60% in total value locked since January first day
of 2022, trapped inside a bear market pattern. To be exact,
on January 1st, Solana’s TVL was approximately $11.22 billion, but
by May 16, it had fallen to around $4.38 billion. Solana is a
blockchain that helps create user-friendly applications that are
very scalable. As the fastest growing ecosystem in the crypto
finance space, Solana has thousands of projects under Web3,
non-fungible tokens (NFTs), and DeFi. Reason Behind The Decline in
Solana Total Value Locked This week, the Solana TVL reached new
lows due to the number of decentralized applications (dApps) in its
ecosystem plummeting. For example, the Tulip yield aggregation
platform has shed more than 11% of its TVL in the last month.
Likewise, the Solend decentralized lending and borrowing platform
have also fallen by more than 8% within the same timeframe. With
the value of both projects locked up, Staking platform Marinade
Finance and decentralized exchange (DEX) protocol Serum have lost
more than 48% and 42%, respectively. Saber, Raydium, Orca, Atrix,
Quarry, Francium, and Mango Markets are the other dApps caused a
decline in the total value locked. Solana is still keeping the
fourth position with the most locked value blockchain. Despite
plummeting by more than $6 billion in 2022. Solana still
reigns supreme in value locked over Cardano, TRON, Fantom, Polygon,
Cronos, Near, Waves, DefiChain, Harmony, and Osmosis. However,
Ethereum, BNB, and AVAX sit at the top of their game. Meta
Platforms has announced that Solona will be integrated with
Instagram. This means that Solona’s non-fungible tokens (NFTs) will
be usable on the social media platform. Other platforms that have
been named for this integration are Polygon and Ethereum. Related
Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints
Gruesome Picture For Market When SOL opened the year, it was priced
at $170.31; by Jan 2nd, the coin reached its yearly high at
$179.43. As of May 16, SOL is trading at $ 55.38 per coin. This
means that the price has decreased by 67% since the start of the
year. Featured image from Flickr, and the chart from
Tradingview
Solana (COIN:SOLUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Solana (COIN:SOLUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024