Solana TVL Falls 32.4% As FTX Turbulence Shakes The Ecosystem
Cryptocurrencies believed to have exposure to Sam Bankman-Fried, FTX, and Alameda Research seem to have been the most affected.
In the last twenty-four hours, the total value locked (TVL) on the Solana chain has decreased by 32.4% as the collapse of FTX has sent shockwaves across the cryptocurrency community.
At the time of writing, DefiLlama reports that Solana’s TVL has dropped to $423.68 million, a decrease of 32.4% in the previous 24 hours and a long cry from its all-time high (ATH) of $10.17 billion on November 9, 2021.
TVL quantifies the total value of all assets that are locked by DeFi protocols. As TVL rises, more coins are placed inside the DeFi protocols, indicating positive attitude, while a dropping TVL indicates investors are withdrawing money from the ecosystem for whatever reason.
The TVL dropped by as much as 51.7% during the course of 24 hours, but was partially rectified prior to the publishing of this article.
The liquid staking protocol located in Solana, Marinade Finance, has had the largest TVL loss on the chain over the last 24 hours, falling 35.1% to $115.79 million.
Other important protocols on Solana have seen similar declines over the last twenty-four hours, with automated market maker Raydium falling 34.25 percent, liquid staking protocol Lido falling 43.13 percent, and loan protocol Solend falling 63.0 percent.
In the same time span, the TVL of other popular blockchains, including Ethereum, Binance smart chain (BSC), and Tron, decreased as well.
Sam Bankman-Fried (SBF), creator of FTX and crypto hedge fund Alameda Research, was an early investor in Solana, despite the fact that Alameda Research and cryptocurrencies exposed to SBF’s enterprises have been the worst hurt by the repercussions.
In the previous twenty-four hours, the price of Solana’s ticket, SOL, has decreased by 40.53 percent to $13.38. This is a significant decrease when compared to its rivals.
The token’s value rose momentarily on the announcement that Binance was considering purchasing FTX, but plunged when Binance pulled out of the deal, citing claims of consumer funds being mismanaged and a regulatory probe.
Anatoly Yakovenko, co-founder of Solana Labs, has reaffirmed his positive attitude on the network despite the recent setbacks faced by SOL.
In a tweet from November 9, he highlighted the quality of builders and recent network-level upgrades as major advantages.
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.
Throughout Solana’s annual conference, a variety of announcements were made, including a partnership with Google Cloud, the debut of the Solana App Store, and the impending release of a smartphone.
