Solana Beats Out Ethereum To Emerge As Best Performer In Terms Of TVL

Scott Matherson

1 year ago

3 mins read

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Ethereum is currently dominating the DeFi and smart contract niches when it comes to the Total Value Locked (TVL). However, while Ethereum is still the king, other chains like Solana, Avalanche, and Polkadot compete to prove themselves worthy contenders to the throne.

Solana, in particular, has seen some massive growth recently in terms of its total value locked (TVL). According to on-chain data from Messari, Solana outperformed other chains by achieving a total value-locked (TVL) gain of 14% over the course of the previous month.

Solana Sees Massive Growth in Total Value Locked

The aggregated TVL of the entire DeFi sector has been in a freefall since November 2022, and Solana hasn’t been exempted. However, Solana’s growth during the past month was driven in significant part by an increase in the TVL of protocols for staking and yielding based on Solana.

TVL refers to the total amount of assets deposited in a decentralized finance (DeFi) protocol and is used as a metric to rank platforms. On-chain reports show that Solana grew its TVL by $45 million in July, corresponding to a 14.4% growth.

According to DeFi Llama, Solana currently sits at the 9th position in terms of TVL locked in all chains. Solana is now at a TVL of $320.07 million, representing a massive growth from its $205.11 million TVL at the beginning of the year.

While Ethereum still has the highest value with a TVL of $23.3 billion, it saw its TVL decline by 13% over the past month. Binance Smart Chain (BSC) also posted a monthly loss in TVL, dropping by 4.6% to $3.3 billion.

SOL price recovers to $24.75 as TVL grows | Source: SOLUSD on Tradingview.com

How Far Can SOL Go In 2023?

While the increase in TVL is due in part to an increase in the TVL of protocols, Solana also witnessed a surge in price at the beginning of July. Data from Coinmarketcap shows the price of Solana shot up from $18.9 on July 1 to $27.4 on July 16 to reach a market cap of $11.81 billion.

Solana, along with Bitcoin, led the surge in the crypto market around this time period. As a consequence, the surge in Solana’s price led to a direct proportion in the value of the total assets locked in DeFi protocols on the chain.

Despite having a TVL growth in the last month, user activity on the chain dropped toward the end of the month. Its market cap also dropped to $9.7 billion at the end of July, demonstrating the volatility of the crypto market.

At the time of writing, Solana is trading at $24.85 and is up by 14.93% in a monthly timeframe. Although experts predict Solana can surge above $30 before the end of the year.

Featured image from Analytics Insight, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

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Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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