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.
