When Solana’s price hit new lows near $54, the total value locked (TVL) for the token also declined to a historical low. Source: Defi Llama, the token’s TVL has been on a steady decline since November 2021. The token’s TVL reached an all-time record of $15 billion in November 2021, but it lost steam and dropped to $4.34 trillion.
Solana’s TVL continued to plummet in the third week of May due to bearish trends within this market that have seen declining interest from investors.
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With its price struggling to find footing, it’s been one of the best-performing crypto projects in recent months. The research shows that Solana’s total value has dropped 60% since the January 1st, 2022. This is due to being trapped in a bear market.
To be exact, on January 1st, Solana’s TVL was approximately $11.22 billion, but by May 16, it had fallen to around $4.38 billion.
Solana uses blockchain to help create user-friendly, highly scalable apps. Solana, the largest ecosystem for crypto finance is growing rapidly. There are thousands of projects in Solana’s Web3, DeFi and non-fungible tokens Web3.
What is the Reason for Solana’s Decline?
The number of decentralized apps (dApps), in the Solana TVL’s ecosystem fell to new lows this week.
In the month just ended, Tulip Yield Aggregator Platform lost over 11% of its TVL. The Solend platform for decentralized borrowing and lending has also seen a drop of more than 8 percent in the same period.
Staking platform Marinade Finance, and the decentralized exchange protocol Serum (DEX), have seen their respective values drop to 48% and 42%.
Other dApps that contributed to a decrease in total value were Raydium, Raydium and Orca.
Solana maintains the fourth place with the largest locked-value blockchain. However, the market has fallen by over $6 billion since 2022.
Solana is still the best value lock over Cardano TRON, Fantom Polygon Cronos, Cronos and Cronos. AVAX and BNB are however at the forefront of their respective fields.
Meta Platforms announced the integration of Solona with Instagram. This means that Solona’s non-fungible tokens (NFTs) will be usable on the social media platform. Polygon, Ethereum and other platforms have also been chosen for the integration.
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SOL’s first year was opened at $170.31. The coin hit its annual high of $179.43 by January 2nd. SOL currently trades at $ 55.38 per piece as of May 16. This is a 67% decrease in price since the beginning of the year.
Featured Image from Flickr. Chart from Tradingview