Solana Skyrockets to add 10% gains, Total Value Locked Near $13 Billion
Arslan Butt • 2 min read
The total value locked (TVL) in the decentralized finance (DeFi) ecosystem on the Solana (SOL) blockchain is approaching $13 billion, setting a new all-time high as more users migrate to the blockchain, due to faster transaction rates and reduced costs.
According to DeFi information aggregator, DefiLlama, as first revealed by Decrypt, the total value locked on the Solana blockchain is currently $12.95 billion, with six projects holding more than $1 billion in cryptocurrency.
DeFi information aggregator DefiLlama
This is a higher volume than the previous record of $12.2 billion TVL set on September 12. The previous peak coincided with an exponential increase in the use of DeFi on Solana during the late summer. Prior to August, Solana’s DeFi protocols were rarely worth more than $1.5 billion in TVL.
The surge in volume is partly due to the fast-expanding interest in Marinade Finance (MNDE – a liquid staking mechanism on Solana). The protocol’s TVL has increased by 69 percent in the last week, and it is currently one of the top four projects in terms of liquidity.
It is trailed only by Sunny (SUNNY), Radium (RAY) and Saber (SBR), the latter of which has a TVL of $1.77 billion. The token is currently worth $185, which is a 24 percent increase from last week’s price. It was close to $200 earlier today, but the market-wide correction has sent it lower for now.
Solana’s growth has coincided with a recent spike in the entire crypto market, which has recently surpassed $2.6 trillion. After Bitcoin reached an all-time high yesterday, the rise in price stalled, as altcoins such as Solana began to reclaim ground against it.
Total value locked – what is its impact?
It’s worth mentioning that the total value locked is a popular metric for determining how much capital is locked in the smart contracts of a specific blockchain or project. Raydium, a decentralized exchange, is now in the lead in the Solana ecosystem, with $1.81 billion locked up in its smart contracts.
Notably, the price of Solana’s native cryptocurrency, SOL, has been rising as well. It has risen 17.3 percent in the last 24 hours, and is now worth $187. Both Solana and ETH users must pay transaction fees with the network’s native coin.
Although Solana’s new all-time high in total value locked in is important, the network is still trailing two other prominent competitors: Ethereum and the Binance Smart Chain. Ethereum’s network has more than $164 billion in crypto assets locked in its smart contracts, while Binance Smart Chain has more than $20 billion.
On the technical front, the price of Solana has skyrocketed, to trade at $200. It has gained over 10% in the past 24 hours. The price analysis for Solana is still bullish, and it is likely to head north to retest the previously placed all-time high of $216.
On the lower side, the coin may gain support at the $193.87 and $178.87 levels. The RSI and stochastic RSI support an upward trend in Solana. Thus, investors may consider staying bullish over the 193.85 level today. Good luck!