Solana’s Total Value Locked Hits New High for 2023

Solana’s complete worth locked (TVL) reached $338.82 million this Monday, marking its highest for the reason that begin of the yr, as per DefiLlama knowledge.

TVL is a metric–arguably a crude one–for measuring how a lot cash is sloshing round a community’s varied DeFi apps.

During the last 24 hours, SOL’s TVL noticed a rise of roughly 4.15%, leaping from $324.64 million on Sunday to $338.82 million by Monday. Pushing that rise, are widespread Solana-based initiatives like Drift, marginfi, Solend, and others.

The community’s native SOL token has additionally reported its strongest week since mid-July. The token skilled a 29% rise over the previous week and has surged 39.08% from its September low, per CoinGecko.

SOL is buying and selling palms at $24.42 press time, indicating a 65% leap from its 2023 lowest value.

Nonetheless, these numbers stay a shadow of their peak in the course of the bull market.

Solana’s TVL had skyrocketed to simply above $10 billion in November 2021 earlier than plummeting. It bottomed out at $210 million in January 2023.

FTX property and SOL liquidation

The most recent restoration isn’t confirmed but, although

Considerations come up in regards to the potential impact on SOL’s value after the FTX property has been permitted to promote its crypto holdings.

The property is alleged to have about $1.2 billion in SOL. In response to market analyst The Tie, of this quantity, as a lot as 22 million SOL tokens (roughly valued at $400 million) are unlocked and will be bought.

This represents near 4% of SOL’s complete provide.

One other 40 million to 44 million tokens, or roughly $860 million, are at present staked and one other $17 million price of SOL tokens are anticipated to be unlocked each month for the following 4 years.

Solana was amongst the initiatives that have been probably the most severely hit by the FTX collapse.

The layer.1 blockchain and Bankman-Fried’s corporations have been closely intertwined, because the Solana Fondation detailed in a weblog put up in November 2022.

The Basis revealed it had round $1 million in money or related belongings with FTX till November 6, 2022, earlier than the platform halted buyer withdrawals.

This represents lower than 1% of its complete funds.

The Solana Basis owned roughly 3.24 million shares in FTX Buying and selling LTD, in addition to about 3.43 million FTT tokens and 134.54 million SRM tokens from Challenge Serum, a decentralized trade on Solana launched by Bankman-Fried in 2020.