Decentralised finance (defi) on the Solana blockchain has experienced a significant resurgence, as the total value locked (TVL) has surpassed the $2 billion mark, despite a recent 6% dip in the last 24 hours.
Data from DefiLlama reveals that the current TVL in defi applications on Solana stands at $2.028 billion, a milestone last achieved in June 2022. This marks a remarkable recovery from December 2023, when the TVL was below $1 billion. Despite this growth, Solana’s defi sector still lags behind its peak during the 2021 bull run, when the TVL exceeded $10 billion.
Leading defi projects on the Solana platform include Marinade and Jito, both of which emphasize staking assets and reward mechanisms.
Solana, renowned for its high transaction speed and low costs, is emerging as a strong competitor to Ethereum (ETH), attracting numerous defi applications and projects.
The blockchain, which underpins the fifth-largest cryptocurrency by market capitalization, SOL, has witnessed increased investor interest and adoption by major brands such as Visa and Shopify.
Contrary to expectations of a decline due to its association with the now-defunct crypto exchange FTX and its controversial founder, Sam Bankman-Fried, Solana has seen its ecosystem flourish, with its cryptocurrency’s price rallying towards the end of 2023.
However, SOL’s price has recently experienced a 6% decrease over the past 24 hours, now standing at $106.79. Despite this short-term dip, Solana’s defi ecosystem continues to demonstrate resilience and growth in the broader cryptocurrency landscape.
