Over 0M Deleted: Is Solana DeFi Going Out the Window?

Over $600M Deleted: Is Solana DeFi Going Out the Window?

Solana’s case has become increasingly interesting in recent days. According to data from DefiLlama, the total value locked in Solana DeFi has dropped by around $600 million since July 31.

Solana’s DeFi TVL started the month at $2.15 billion but has dropped to $1.56 billion at press time. This has come to reflect Solana’s position among the chained TVLs.

At the beginning of the month, Solana was in fifth place, but has dropped two more places with Polygon and Acala overtaking him. In the last day alone, Solana lost more than 16.53% of its total value locked in DeFi protocols.

Source: DefiLlama

What happens now?

Despite recent glitches, Solana has seen a general uptick in trading for select tokens on the network. CoinGecko has reported on the most traded tokens on Solana in the last 24 hours.

STEPN’s GMT token tops the chart with over $356.8 million traded, followed by SRM token with $72.5 million.

The Everlend protocol has also published a to update on the Solana loan in the second week of August. Solana’s total loan TVL during this period has accumulated to $769.5 million.

The list of loan protocols is headed by Solend with $329.49 million as he continues to dominate the proceedings. The Mango and Tulip protocols continue to occupy the second and third position with $231.77 million and $81.5 million respectively.

Among the token returns, Tulip is the only one to show a positive change over the week with an increase of 3.76%.

This further reflects the attack on Solana DeFi as it continues to drop in August.

How did SOL react?

The SOL token has been feeling the market pressure lately with the “sale” class becoming more common. This has led to a nearly 2% drop in the last day, bringing SOL prices down to $43.

The price drop is also exacerbated by the drop in network volume, which is down around 2.20%.

Well, Solana is also going through a rough patch when it comes to social activity.

Recent major increases in Shiba Inu and Ethereum have led to a decline in Solana’s social volume, as seen in the chart below. While it did handle some rare surges, the social volume metric underperformed and was rated at 36 at press time.

Source: Sentiment

The worst could yet come for Solana in the next month when Ethereum’s PoS transition takes place.

The merger is a highly anticipated event that is expected to be a major bullish signal for the Ethereum PoS chain. While not final yet, the change could end up affecting other networks with Solana as a viable target.

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