According to DefiLlama TVL data, Solana has slumped down to the #8 slot in total TVL, roughly a third lower than a month ago and over ten percent lower than just a week ago. At peak bull market season late last year, Solana’s defi TVL amassed to north of $10B – but today sits at less than $1B, with over a quarter of Solana’s TVL living within lending platform Solend.
TVL is highly impacted by underlying asset prices (so as the price of SOL or any other digital asset declines or rises, so too does protocols TVL), so generally all blockchains have seen a descent in TVL throughout defi as the market has been in bear mode this year.
Solana’s descent, however, has been certainly at a higher clip than competitors, and the chain is in serious danger to falling out of the top 10 in defi TVL. It didn’t help to have the $100M+ exploit of Mango Markets in recent weeks, which concluded with a bug bounty that drained the protocol but reimbursed retail investors.
It isn’t all ‘doom and gloom’ for Solana, however, as there are plenty of opportunities for growth and development beyond defi. However, the picture around NFTs doesn’t seem too much brighter either.
Solana has long been considered the de facto #2 in all things NFTs behind Ethereum. Could their positioning be at risk? Never say never, but the NFT ecosystem at large continues to grow and so too does the threat to Solana’s positioning.
At one point over the weekend, data aggregator CryptoSlam displayed that Solana had fallen to the #3 spot: