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Solana DeFi experiences almost $700M in value wiped out after the FTX Fallout as FTX founder Sam Bankman-Fried was the prominent supporter of the network. When decentralized finance (DeFi) was at its peak in November it stored more than $10 Billion on the Solana blockchain. Additionally, the huge popularity of the Solana network was led by major industry-related proponents that include Sam Bankman-Fried.
Now, moving towards the next year, the total value locked (TVL) has dropped to just over $300 Million with FTX filing Chapter 11 bankruptcy proceedings and facing prosecution, Multicoin and Sino Global reporting multimillion-dollar losses and the Solana Foundation itself losing “tens of millions.”
It must be noted that Mr. Bankman-Fried’s downfall translated to generally falling sentiment for Solana, given his prominent endorsement of the Solana network.
In addition $10 Billion TVL on Solana network has declined over the recent year, and the price of SOL contributing to that drop, the past two weeks have been more drastic. Also, over $700 Million has exited Solana-based applications while a 70% drop from the $1 Billion in TVL on early of this month.
Solana Price
The current Solana price is $14.14 USD with a 24-hour trading volume of $446.11 Million USD. It is down 0.15% in the last 24 hours. The current market cap is $5.13 Billion USD.
Solend, a DeFi protocol for lending and borrowing on the Solana blockchain, took the biggest hit both in percentage and value terms as it held more than $280 Million on Nov. 2 and now holds under $30 Million. This data shows a vast amount of stablecoins, wrapped bitcoin tokens and Solana-based tokens have left the Solend.
Furthermore, Kana Labs, an emerging deFi project is building a multi-functional cross-chain aggregator platform, starting with Solana and Aptos, with future plans for EVM-compatible chains. The deFi project is an aggregator protocol that is already in operation for the Solana and Aptos chains, while the Kana Wallet and Cross-Chain Solution will focus on Solana and Neon.
DeFiLlama data shows that Solana-based decentralized exchanges (DEXs) Raydium and Orca are now the largest decentralized applications (dApps) on the network, locking up more than $51 Million and $46 Million respectively. These have undergone over 40% in liquidity exit the platform in the recent week. And combinedly held over $150 Million just a few weeks ago. Still some think that the declines might help the market find a fair value for Solana along with other networks.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
