Solana’s Total Value Locked has shrunk amid FTX contagion. TVL is a metric that highlights the total number of coins deposited via DeFi protocols, including staking, lending, and liquidity pools.
Data from DeFiLlama showed that SOL’s TVL is down over 33% to $417 million as of this writing, a significant drop from the previous peak of $10 billion hit on November 9, 2021 became.
Out of all SOL protocols, the Solend DeFi platform has lost almost all of its value. Its current TVL is $44.83 million, down over 60% over the past 24 hours. Similarly, Radium and Lido TVL are down 35% and 47% respectively on the day and are currently hovering around $62M and $49M, respectively.
The largest of these, liquid staking protocol Marinade Finance, also saw its on-chain TVL fall 37% to $107 million over the past 24 hours.
Recently, Solana’s native SOL coin lost value in the early hours of November 9th, leaving lender Solend to close a sizeable account that went under water. SOL’s price has fallen 65% in less than a week and is trading at $14 at press time.
Solend initially attributed the failure of the liquidation to a network slump. Later investigations revealed that the problem was a lack of on-chain SOL liquidity, which the protocol attempted to address by raising the interest rate on SOL to over 2,500% to attract deposits and incentivize borrowers to repay their loans.
Solana Investors Panic Amid FTX FUD
As investors rushed to sell their stakes, more than $800 million worth of SOL is expected to be unseated early Wednesday, data from solanacompass.com revealed.
SOL began falling shortly after Binance CEO Changpeng Zhao stated that due to recent “revelations” the world’s largest cryptocurrency exchange would sell $500 million worth of FTT, a token created by rival FTX became.
FTT holders rushed to exit their positions by selling the token aggressively, concerned that the Binance sale would send its price skyrocketing, leading to the very free fall they were anticipating.
As Solana began its descent, leading on-chain experts speculated that FTX and Alameda would liquidate their SOL holdings to raise cash to support the FTT.
The CoinDesk article states that as of June 30, Alameda held around $1 billion in SOL. It accounted for 10% of Solana’s market cap at the time.
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