by In the 3rd week of May, Solana’s TVL keeps falling owing to bearish patterns in the crypto market, which have witnessed a decline in the interest shown to DeFi.
Over the last year, Solana has been among the cryptocurrency projects that have performed well. Since the beginning of 2022, Be[In]Crypto Research reports that Solana has declined in TVL by almost 60 percent.
On the 1st of January, Solana’s TVL was roughly $11.22 billion, but by the 15th of May, it had dropped to approximately $4.38 billion.
Solana’s blockchain allows developers to construct apps that are scalable and user-friendly. The network is expanding at the quickest rate and has hundreds of projects organized around Web3, DeFi, and NFTs.
Reason For The Fall Of Solana’s TVL
Currently, the value of Solana TVL plummeted to a new depth as decentralized apps in its community continue to decline. For instance, the value of its decentralized borrowing and lending platform, Solend, has decreased by over 8 percent in the past month. In contrast, the value of Tulip, its yield aggregation network, has reduced by 11 percent.
Both the Marinade Finance (staking platform) and the decentralized exchange protocol, Serum, have seen losses of approximately 42 percent and 48 percent of their overall values frozen, respectively.
Other decentralized applications, including Atrix, Mango, Raydium, Saber, Quarry, Francium, and Orca Markets, have also played a role in the reduction of the total value locked. Still, this list is not the entire list.
Despite the decline in TVL, Solana has retained its place as the 4th blockchain network with the greatest value locked even when its value has decreased by over $6 billion.
Also, Solana still owns the largest share of the TVL over Polygon, TRON, Waves, Fantom, Harmony, Cronos, Near, DefiChain, and Osmosis. This places Cardano in 5th place.
Meta Platforms has stated that non-fungible tokens built on Solana’s blockchain would be added to Meta’s Instagram network. Ethereum and Polygon are two more systems that have been mentioned for this connection.
The Price Of SOL In 2022
SOL started 2022 with a price of $170.32, had an annual peak of $179.43 on the 2nd of January, and ended with a price of $55.38 on the 15th of May. Since the beginning of the year, the trading price of SOL has fallen by an equivalent of 67 percent due to the overall decline in the market.
Although the crypto market is declining at the moment, many are still hopeful that the market will be bullish soon. However, several individuals and institutions have lost millions of dollars over the past week.
