Rising Total Value Locked in Solana Points to Growing Investor Trust

Rising Total Value Locked in Solana Points to Growing Investor Trust

The Rise of Solana’s Total Value Locked

The blockchain platform Solana is witnessing a surge in its Total Value Locked (TVL), approaching levels not seen since the FTX collapse. This resurgence, a significant milestone after over a year, raises questions about its sustainability among investors.

Solana’s TVL, which was previously around $350 million, has experienced a substantial climb, reaching $1.4 billion in December 2023.

Solana’s TVL Growth Trajectory

Data from DefiLlama indicates that Solana’s TVL began to rise in October 2023, with a notable boost in December. By December 20th, the TVL had soared to $2.069 billion, surpassing the $2 billion mark for the first time since June 2022. However, the TVL has recently dipped below $2 billion, settling at $1.9 billion, raising questions about its consistent growth.

Investor Concerns Amidst Price Fluctuations

Trading volumes for Solana, as reported by DefiLlama, show a rising trend with a significant spike on February 20th. Despite a brief dip on February 17th, the volume remained high at over $765 million. This increased activity across Solana’s network suggests heightened usage and interest.

However, Solana’s token price has been volatile, reaching a peak of $117 on February 14th before a 7% decline unsettled the market. Currently, the token’s price hovers around $101, following a further decline of over 4%, leaving investors apprehensive about the future.

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