Solana TVL Surpasses $6 Billion Since 2022—What’s Next for $SOL?

Solana’s Total Value Locked (TVL) has hit a major milestone, surpassing $6 billion for the first time since January 2022. The impressive growth marks the revival of Solana’s decentralized finance (DeFi) ecosystem, signaling increasing confidence in the network’s potential. Let's take a closer look at what’s driving this surge.

• Solana's TVL surpasses $6 billion for the first time since January 2022 with over 40.72 million $SOL locked in DeFi protocols.

• Raydium leads Solana's DEX resurgence, surpassing Kamino Finance. Solana now commands 31% of DEX volume across all blockchains.

• Solana’s TVL growth is driven by liquid staking tokens and restaking protocols like Jito and Solayer.

Solana DeFi TVL | Source: DefiLlama 

As of October 2024, Solana’s TVL reached $6 billion, up from previous lows seen earlier in the year. Over 40.72 million $SOL, or approximately 8.66% of its circulating supply, is now locked in DeFi protocols. This TVL growth isn't just the result of $SOL price appreciation but comes from increased activity in key DeFi protocols. Notably, this figure excludes SOL staked natively, emphasizing pure DeFi engagement.

Solana Leads in DEX Volume

Solana’s dominance in decentralized exchange (DEX) volume is also contributing to the network's DeFi growth. In the past few months, Solana flipped Ethereum and other blockchains in both 24-hour and 7-day DEX volume metrics. Solana now holds a 31% share in DEX volume across all blockchains, the highest it has seen in two months.

This increasing volume signals accelerating on-chain activity, further solidifying Solana's position as a DeFi powerhouse.

Read more: Solana vs. Ethereum: Which Is Better in 2024?

One of the standout contributors to Solana's DeFi revival is Raydium, the blockchain’s largest decentralized exchange (DEX). Raydium has overtaken Kamino Finance, becoming the second-largest protocol by TVL on Solana. This resurgence highlights Solana’s renewed dominance in the DeFi sector.

Raydium had been a key player during Solana’s DeFi boom in 2021 but saw its market position decline. Now, it’s back on top, thanks in part to the growing popularity of Solana-based meme coins. Platforms like Pump.fun have helped lock liquidity in Raydium, pushing its TVL higher. The total market cap of Solana-based meme coins recently surpassed $11 billion, further boosting the DeFi ecosystem.

Read more: Top Decentralized Exchanges (DEXs) in the Solana Ecosystem

Jito TVL | Source: DefiLlama 

Another key driver behind Solana’s TVL growth is its thriving Liquid Staking Token (LST) ecosystem. Leading the charge is Jito, the largest liquid staking protocol on Solana, which has amassed over $2 billion in TVL. Jito’s rebranding as a restaking protocol has added to its appeal, especially with the rise of restaking in the Solana ecosystem. Solayer, another restaking protocol, has surpassed $204 million in TVL, further contributing to Solana’s DeFi growth.

Some crypto exchanges have launched liquid staking tokens on Solana, driving more participation and attracting users to the network. The success of these liquid staking protocols shows the potential for restaking to become a major trend in Solana’s DeFi space.

Read more: Restaking on Solana (2024): The Comprehensive Guide

SOL/USDT price chart | Source: KuCoin

Solana’s growth in DeFi has been mirrored by a price surge for its native token, $SOL. As of October 14, 2024, $SOL hit a peak of $160, up 20.43% over the past seven days. This price increase has also drawn attention to the network's growing DeFi ecosystem, attracting new users and capital.

With the upcoming Federal Reserve meeting and positive macroeconomic conditions, the bullish sentiment surrounding Solana shows no signs of slowing down. Key stakeholders continue to lock their $SOL in staking contracts, with $2 billion worth of $SOL staked in recent weeks.

As Solana’s DeFi ecosystem expands, key players like Raydium, Jito, and Solayer will continue to drive TVL growth. The recent surge in meme coin market cap and Solana's leadership in DEX volume suggest that the network is poised for further success. The combination of rising liquid staking participation, increasing on-chain activity, and growing protocol engagement makes Solana one of the most promising blockchains in the DeFi sector.

Solana's DeFi resurgence has lifted its TVL beyond the $6 billion mark for the first time since 2022, largely fueled by strong participation in DeFi protocols, liquid staking tokens, and rising on-chain activity. These developments have positioned Solana as a key player in the DeFi ecosystem. However, while the momentum is encouraging, it's important to remember that the crypto market is highly volatile, and external factors such as regulatory changes or broader market corrections could impact Solana's future growth. Investors should carefully assess the risks and stay informed before making any investment decisions.

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