Solana’s total value locked (TVL) has reached its highest level since the beginning of the year, standing at $338.82 million according to data from DefiLlama. TVL is a metric used to measure the amount of money circulating within a network’s decentralized finance (DeFi) applications. In the past 24 hours, Solana’s TVL increased by approximately 4.15%, driven by popular projects like Drift, marginfi, and Solend. Additionally, Solana’s native token, SOL, has experienced a significant surge, rising by 29% over the past week and 39.08% from its September low.
Despite these positive developments, it is important to note that these numbers are still far from the peak reached during the previous bull market. In November 2021, Solana’s TVL skyrocketed to over $10 billion before sharply declining to a low of $210 million in January 2023.
However, there are concerns surrounding the potential impact on SOL’s price due to the approval given to the FTX estate to sell its crypto holdings. The estate reportedly holds around $1.2 billion worth of SOL, with approximately 22 million tokens currently unlocked and available for sale. This represents nearly 4% of the total supply of SOL. Furthermore, an additional 40 million to 44 million tokens, valued at approximately $860 million, are currently staked, and more than $17 million worth of SOL tokens are expected to be unlocked every month for the next four years.
It is worth noting that Solana was severely affected by the collapse of FTX, as the two entities had significant financial ties. The Solana Foundation, for example, had funds and assets tied up with FTX before the platform halted customer withdrawals. However, these assets represented less than 1% of the Foundation’s total funds. The Foundation also owned shares in FTX Trading LTD and held tokens from Project Serum, a decentralized exchange launched on Solana.