Solana DeFi reaches $2 billion TVL for the first time since June 2022

Interest in DeFi on Solana is growing — and the total value locked on the blockchain just crossed the $2 billion mark again. Figures from DeFi Llama show that the amount of funds used on DeFi applications running on Solana is currently $2.025 billion. The last time it reached such a high level was in June 2022.


Solana TVL. Source: DeFi Llama

At the beginning of December, Solana's TVL was below $1 billion.

However, the Solana DeFi space has a long way to go until it reaches the peak of the 2021 bull run, when TVL was at over $10 billion. At the time of writing, its two largest DeFi projects are Marinade and Jito, according to DeFi Llama data — both are platforms for staking assets and earning rewards.

Solana is a popular cryptocurrency network and the blockchain behind the fifth largest cryptocurrency by market capitalization, SOL.

It aims to compete with Ethereum, the blockchain behind ETH, the second largest cryptocurrency.

Many DeFi applications and projects – which enable decentralized borrowing, lending, and trading – run on Ethereum's network. But there is growing interest in the Solana ecosystem because it is a cheaper and faster network.

The hype surrounding Solana has exploded recently. Major investors are eyeing the asset, and major brands like Visa and Shopify have said they will use its blockchain.

It was feared it would not be able to revive after the FTX cryptocurrency exchange collapsed and its founder, Sam Bankman-Fried, was in jail.

But developers continued to build on Solana and its price rose in late 2023 in a feat that helped the altcoin climb to 5th place on the market capitalization rankings.

The price of SOL is currently at 106 USD, down 4% in the last 24 hours.



SOL price chart. Source: TradingView