When Solana price reached new lows near $54, the token’s Total Closed Value (TVL) also dropped to an all-time low. According to data from Davy Lamathe token’s TVL has been in a steady decline since November 2021. That month, it reached an all-time high of $15 billion, but then lost momentum and fell to $4.34 billion.
Solana’s TVL stock continued to decline in the third week of May due to the bearish trends in this market which saw a drop in investor interest.
As its price struggles to find a foothold, it has been one of the best performing crypto projects in recent months. However, the research indicates that Solana has lost 60% of total value booked since January 1, 2022, trapped inside a bear market pattern.
To be precise, on January 1, Solana’s TVL was worth about $11.22 billion, but by May 16, it was down to about $4.38 billion.
Solana is a blockchain that helps create user-friendly and highly scalable applications. As the fastest growing crypto finance ecosystem, Solana owns thousands of projects within Web3, Non-Foldable Tokens (NFTs), and DeFi.
The reason behind the decrease in the total value of Solana is closed
This week, Solana TVL reached new lows due to the decrease in the number of decentralized applications (dApps) in its ecosystem.
For example, the Tulip productivity aggregation platform shed more than 11% of TVL in the past month. Similarly, the decentralized lending and borrowing platform Solend also fell by more than 8% over the same time frame.
With the value closing of both projects, the staking platform Marinade Finance and the Decentralized Exchange (DEX) protocol lost more than 48% and 42%, respectively.
Saber, Raydium, Orca, Atrix, Quarry, Francium, and Mango Markets are the other dApps that have caused the total locked out value to drop.
Solana still holds the 4th position with the most valuable blockchain unlocked. Although down more than $6 billion in 2022.
Solana continues to lead by value closed on Cardano, TRON, Fantom, Polygon, Cronos, Near, Waves, DefiChain, Harmony and Osmosis. However, Ethereum, BNB, and AVAX are at the top of their game.
Meta Platforms has announced the integration of Solona with Instagram. This means that Solona’s non-fungible tokens (NFTs) will be usable on the social media platform. Other platforms named for this integration are Polygon and Ethereum.
When SOL opened the year, it was $170.31; By January 2, the coin reached an annual high of $179.43. As of May 16, SOL is trading at $55.38 per coin. That is, the price has fallen by 67% since the beginning of the year.
Featured image from Flickr, and the chart from Tradingview