Total value locked (TVL) on the Solana chain has plummeted 32.4% in the last 24 hoursas the news stemming from the collapse of FTX has affected the cryptocurrency ecosystem.
According to DefiLlama, at the time of writing this article, Solana’s TVL has fallen to $423.68 million, down 32.4% in the last 24 hours, a far cry from its all-time high (ATH) of $10.17 billion on November 9, 2021.
The TVL measures the total value of all assets locked in decentralized finance (DeFi) protocols. When the TVL rises, it means that there are more coins deposited within the DeFi protocols and can indicate a bullish sentiment, while a falling TVL shows that investors are withdrawing their funds from the ecosystem for one reason or another..
The drop in the TVL reached 51.7% in 24 hours, but was slightly corrected until the writing of this article.
Solana-based liquid staking protocol Marinade Finance has seen the largest on-chain TVL loss; fell 35.1% to USD 115.79 million in the last 24 hours.
Other major protocols on Solana have seen similar declines in the last 24 hours – Automated Market Maker Raydium is down 34.25%, liquid staking protocol Lido is down 43.13% and lending protocol Solend is down 63.07%.
Other leading blockchains have also seen declines in TVL over the same time period; Ethereum is down 10.59%, BNB Chain is down 9.68%, and Tron is down 8.84%.
Sam Bankman-Fried (SBF), the founder of FTX and crypto hedge fund Alameda Research, had been an early investor in Solanaalthough Alameda Research and the cryptocurrencies exposed to SBF companies have been the most affected by the fall.
Solana (SOL) has also fallen sharply compared to its competitors; its price fell by 40.53% to USD 13.38 in the last 24 hours.
The token had risen briefly on news that Binance might end up acquiring FTX, but fell after Binance backed out of the deal.citing accusations of mishandling consumer funds and an investigation by regulators.
Despite the recent challenges facing SOL, Solana Labs co-founder Anatoly Yakovenko has reiterated his bullish stance on the network despite recent losses.
In a tweet on November 9 pointed to the quality of the builders and the recent improvements at the network level as big positives.
1/ I said this on stage at Breakpoint just a few days ago – the builders on Solana are second to none, and the projects they’re building can often only be built on Solana.
— toly (@aeyakovenko) November 9, 2022
1/ I said it on the Breakpoint stage a few days ago: Solana builders are second to none, and the projects they are building can often only be built on Solana.
At Solana’s annual conference, a number of announcements were made, including a partnership with Google Cloud, the launch of the Solana App Store, and an upcoming smartphone.
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