DeFi

Solana (SOL) DeFi Ecosystem Drops 96%, TVL Reaches $330 Million

DeFiLlama, one of the most reliable TVL aggregators for DeFi assets, reports that The total value locked (TVL) in Solana (SOL) network’s DeFi ecosystem has fallen drastically from its peak of $10.17 billion in December of last year to only about $329 million as of November 14th- approximately a decrease of about 96%.

Screenshot 2022 11 15 220034
Source: DeFiLlama

When concerns arose at the beginning of November over FTX’s liquidity, TVL on the Solana network decreased rapidly, and the impact was so severe that in just one week, it had plunged to 63%. 

The data show that among the top Decentralized Finance projects on Solana, lending platform Solend lost 28.80% of its TVL on the last day and 88.47% of its TVL over the previous seven last days. 

In addition, Solend’s TVL monthly change is around 89.09%, and there are currently about $26.04 million locked in the protocol compared to $284.33 million on November 2nd.

Solana
Source: DeFiLlama

Tulip Protocol, the first yield aggregation platform based on Solana with auto-compounding vault techniques, lost around 67.01% of TVL during the course of the previous seven days. Similar losses were suffered by Raydium (50%), Marinade Finance (53.61%), and Friktion (60%).

Solana Ecosystem & FTX Bankruptcy: Facts

According to the Solana Foundation, as of November 6th, when FTX.com stopped processing withdrawals, it had $1 million in cash or cash equivalents. 

It has a limited effect on the network’s operations because it represents less than 1% of its cash or cash equivalents. Furthermore, it had no SOL custody on FTX.com.

The network said:

In light of the voluntary Chapter 11 bankruptcy proceedings that FTX/Alameda announced on November 11th, we do not know how these and other FTX/Alameda’s assets will be settled in the aftermath of the Chapter 11 proceedings.

Moreover, a recent evaluation by the Solana Foundation shows that the majority of the top blockchain-based ventures on this network (DeFi) have had minimal to no exposure to FTX. 

Even though many projects will inevitably face difficulties due to FTX, they also appear optimistic about how they can move forward.

In addition, the network asserts that:

During the events of the past week, the Solana network has not experienced any notable performance or uptime issues.

Related Reading | Hong Kong To Become Virtual Asset Hub Despite FTX Collapse

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