Solana’s decentralized finance (DeFi) ecosystem has achieved a landmark milestone. According to data from the DeFi intelligence tracker, DeFiLlama, the total value of assets locked (TVL) in the ecosystem has climbed over 500% since last October.
Solana’s DeFi TVL Surges
Solana DeFi TVL currently stands at around $1.74 billion. This figure marks a substantial increase of 500% since the $300 million TVL recorded last October. This increase is a reflection of the DeFi industry’s growing interest in and confidence in Solana’s abilities.
Meanwhile, the ecosystem’s recent increase is worth noting because the last time Solana had its TVL in billions was in 2021. However, the FTX collapse in November 2021 severely impacted Solana due to its close association with the exchange and its founder, Sam Bankman-Fried. Then, Solana’s TVL peaking at $10 billion in October faced a significant downturn, plummeting to a low of $210 million in January 2023.
However, the ecosystem made a notable recovery last year together with the price of SOL. In October, Solana’s total value locked increased to $300 million. Fast forward to today, TVL surpasses by over 500% to around $1.74 billion. The value of SOL also increased by 6.57% at the time of writing. According to price tracking platform Coinstats, SOL trades at $101.9.
What Contributed to the Surge?
The recent boost in the Solana ecosystem may be attributed to recent airdrops which essentially create value on the network by attracting more users, and thus more capital.
One of them is a a three-day airdrop called $WEN launched earlier this year by Jupiter, a Solana-based decentralized exchange (DEX). It was based on a fractionalized non-fungible token (NFT) of a poem called “A Love Letter to Wen Bros,” written by Meow (the founder of Jupiter). This airdrop saw rapid adoption with more than 600,000 wallets participating.
WEN airdrop was a template for Jupiter’s JUP token airdrop which was later launched on 31 January. It recorded participation from more than 955,000 wallets, and approximately $700 million worth of the tokens were distributed to wallet addresses.
The surge in Solana DeFi TVL underscores the influx of investors and the growing interest in the ecosystem. It also reflects the robust growth and increased adoption in DeFi.