Solana Achieves Record Total Value Locked in 2023

Crypto News– Solana achieves: On this Monday, Solana’s total value locked (TVL) reached an impressive milestone, hitting $338.82 million, a figure not witnessed since the beginning of the year, according to data from DefiLlama. While TVL may be considered a somewhat simplistic metric, it serves as a measure of the substantial capital circulating within a network’s diverse DeFi applications.

Over the course of the last 24 hours, SOL’s TVL surged by approximately 4.15%, making a significant leap from $324.64 million on Sunday to the newly achieved $338.82 million on Monday. This remarkable increase in TVL can be attributed to the growing popularity of various Solana-based projects, including notable names such as Drift, marginfi, Solend, and several others.

Solana Achieves Record Total Value Locked in 2023

Additionally, Solana’s native cryptocurrency token, SOL, has recently witnessed a resurgence in its value, marking its strongest performance since mid-July. Over the past week, SOL exhibited an impressive 29% increase in its market price and, notably, surged by an astounding 39.08% from its lowest point in September, a statistic confirmed by CoinGecko. As of the present moment, SOL is actively trading at $24.42, indicating a substantial 65% jump from its lowest recorded price in the year 2023.

It’s crucial to recognize that, despite these noteworthy accomplishments, they still fall short of the peak levels observed during the exuberant phases of the cryptocurrency market. Solana’s Total Value Locked (TVL) had previously surged to just slightly above the remarkable threshold of $10 billion in November 2021. However, what followed was a swift and significant decline that saw Solana’s TVL plummet to a mere $210 million by January 2023. This drastic contraction served as a stark reminder of the inherent volatility and unpredictability that characterizes the cryptocurrency landscape, where rapid fluctuations are the norm rather than the exception.

Nevertheless, the recent resurgence in Solana’s TVL and the impressive appreciation of the SOL token’s value signify a resurgence of interest and optimism within the Solana ecosystem. This resurgence is particularly noteworthy given the continuous evolution and maturation of the blockchain industry.

FTX Estate and SOL Liquidation

Growing concerns have emerged within the cryptocurrency community regarding the potential impact on Solana’s (SOL) price following the approval for the sale of crypto holdings associated with the FTX estate. This development has taken on significance due to the substantial holdings of SOL within the estate, estimated to be around $1.2 billion.

According to insights provided by market analysts at The Tie, a notable portion of this considerable sum, specifically 22 million SOL tokens, is currently unlocked and available for sale. These tokens have an approximate market value of $400 million, constituting nearly 4% of SOL’s total supply.

Adding complexity to the situation, an additional 40 million to 44 million SOL tokens, equating to approximately $860 million, are presently staked, thereby further limiting the circulating supply. Additionally, an additional $17 million worth of SOL tokens are anticipated to become unlocked on a monthly basis for the subsequent four years.

The backdrop to this situation is the fallout from the FTX collapse, which had a pronounced impact on Solana. Both the layer-1 blockchain and entities associated with Sam Bankman-Fried, the founder of FTX, were deeply intertwined. The Solana Foundation elucidated this relationship in a blog post dated November 2022. It was disclosed that the Foundation had maintained approximately $1 million in cash or similar assets with FTX until November 6, 2022, when the platform ceased customer withdrawals.

The impending sale of SOL tokens from the FTX estate is raising concerns within the cryptocurrency market due to its potential to influence the supply-demand dynamics of SOL, which, in turn, could impact its market price. Market participants and SOL enthusiasts will undoubtedly keep a close watch on how this situation unfolds and its repercussions on the Solana ecosystem.