The Solana decentralized finance (DeFi) total value locked (TVL) has reached a critical milestone. Notably, on September 10, network dApps collectively held 70.59 million SOL, the highest level since June 2022, per DefiLlama data. The increasing TVL highlights the growth of the Solana ecosystem and suggests that SOL’s price may have hidden potential.
Solana TVL – Low in Dollar terms, High in Actual SOL Locked
As of this writing, Solana’s TVL has increased significantly from its level a year ago. According to DeFiLlama data, the TVL is currently pegged at $9.591 billion.
The top three Solana-based projects pushing this increase include Jito, Kaimo, and Jupiter. These platforms currently hold TVL of $1.79 billion, $1.39 billion, and $1.024 billion, respectively.
However, it is also worth noting that SOL TVL, in USD terms, falls behind other competitors. Ethereum and Tron have the highest TVLs, at $44.5 billion and $7.95 billion, respectively. Solana comes behind with a TVL of almost $10 billion.
In actual growth terms, this TVL is lower than $11.45 billion, registered on July 27. However, in actual SOL deposited, there has been steady growth, with 71 million coins now locked.
A growing TVL is generally a positive sign for a blockchain network. Still. However, it doesn’t necessarily indicate increased user numbers or activity because most dApps do not require a substantial deposit base. The most reliable proxy for gauging the number of users is the number of unique active addresses interacting with those applications.
Solana Blockchain Over the Past Year
Solana, designed as a high-performance blockchain, has witnessed many activities and developments in the past year. Across the memecoin sector, Solana-based memecoins, including BONK, Dogwifhat (WIF), and Poodlana (POODL), have received increasing attention this year.
The focus on fun and accessibility make these memecoins an interesting option for investors seeking a lighthearted entry point to invest in Solana.
Solana also experienced a series of outages on the blockchain this year. This year’s first outage occurred in February, prompting Solana to cease mainnet operations and pause all blockchain activity. Reports revealed that system flaws caused the outage. However, by August, the protocol stated that its developers, validators, and client teams had resolved the issue.
Another notable event in the Solana ecosystem is the increased demand for its Saga Mobile this year. Launched in 2023, the first Solana Saga, priced at $1000, didn’t see much demand. However, the second phone sold out in less than a week of its release. As a result, Anatoly Yakovenko, co-founder of Solana Labs, hinted at the future release of a third phone.
Solana’s Current Market Outlook
As of this writing, SOL is ranked the fifth largest cryptocurrency by market capitalization, at $62.8 billion. Per market data, the token experienced a 4% rise in the past day to trade at $134.47. The trading volume also surged by 41.3% to $2.2 billion within the same period.
The current price action reveals that SOL price is in the process of a breakout from the falling wedge pattern. If SOL breaks through the upper trendline of the wedge, there could be a massive upward move.
