The Solana blockchain hit a yearly high in total value of assets locked (TVL) at $335 million on October 2, as reported by DeFillama. data.
According to the latest available data, the TVL fell slightly to $329.59 million. However, this increase highlights the recent influx of investors into the network’s decentralized finance (DeFi) ecosystem.
This increase represents a notable change from the trend of the previous year. In 2022, Solana’s DeFi TVL experimented a gradual decline, influenced by the decline in the value of SOL and the broader market downturn. Concerns over the project’s association with bankrupt FTX further exacerbated this decline.
However, the network has seen some growth this year and has seen its TVL jump $210 million to current levels. This represents an increase of almost 40% compared to the year-to-date measurements.
It is worth noting that, despite this recent growth, Solana’s DeFi TVL remains significantly below its all-time high, which exceeded $10 billion at the height of the 2021 bull market. At that time, the Solana blockchain was largely touted as a potential “Ethereum killer.”
Solana still faces major headwinds.
The Solana ecosystem is seeing notable growth this year, with adoptions from Visa, Shopify, and other large traditional institutions. However, the blockchain network still faces major challenges.
Solana’s SOL token was one of several digital assets that the United States Securities and Exchange Commission (SEC) classified as securities in its report. legal actions against major cryptocurrency exchanges, including Binance and Coinbase.
This classification led to the rapid removal of the asset by several trading platforms like Revolution, Bakkt, and others.
Additionally, the network token still faces significant selling pressure as the court approved FTX for bankruptcy. move to sell its significant digital asset holdings, which include a position of over $1 billion in SOL.
These issues have contributed significantly to the difficulties SOL’s price has faced this year. At press time, SOL was trading at $23.06, up more than 133% year to date, according to CryptoSlate data.
