- Solana’s TVL has fallen by 97% since November 2021.
- Community charges and income have fallen steeply within the final yr.
The DeFi TVL of Layer 1 (L1) blockchain Solana [SOL] has returned to its April 2021 lows, information from DefiLlama revealed. After peaking at $10 billion on 9 November 2021, it has since declined by 97%. At press time, Solana’s TVL was $286.86 million.
Supply: DefiLlama
Learn Solana’s [SOL] Value Prediction 2023-24
Solana’s many downtimes and its ties to disgraced Bankman-Fried
Since its launch, the Solana community has been plagued with a collection of chain halts on account of community overload brought on by actions reminiscent of botting and spam. Within the final yr alone, the community suffered some type of main outage a complete of ten instances, the newest being on 28 February, when the chain skilled “a big forking occasion.”
Whereas Solana touts itself as a less expensive layer 1 than Ethereum [ETH], the frequent downtimes within the final yr eroded confidence in it, inflicting a few of its protocols to expertise a decline in community exercise, therefore the regular fall in TVL.
Additionally, Solana’s ties to disgraced founder Sam Bankman-Fried contributed to the numerous fall in its TVL when cryptocurrency alternate FTX surprisingly went underneath in November 2022.
It’s believed that Bankman-Fried may have been Solana’s single most outstanding backer. Critics have additionally argued that the rise within the worth of the SOL coin and related property between 2020 and 2021 was influenced, to some extent, by Bankman-Fried’s interventions and promotion out there.
In accordance with information from DefiLlama, inside 24 hours of FTX’s collapse, Solana’s TVL plummeted by 32.4%. Since then, it has fallen by 32%.
State of the chain
This yr, Solana’s community exercise has trended downwards for the reason that center of Might, information from Artemis confirmed. In accordance with the info supplier, the depend of distinctive pockets addresses sending on-chain transactions every day on the community has dropped by 53% since 18 Might.
Supply: Artemis
Likewise, data from the identical information supplier revealed a corresponding decline in transactions depend for the reason that finish of June. With 15.79 million transactions accomplished on the blockchain on 9 July, the overall variety of transactions registered every day on Solana declined by 37% since 28 June.
Reasonable or not, right here’s SOL’s market cap in BTC’s phrases
Supply: Artemis
Relating to community charges and income, information from Token Terminal confirmed a 66% respective fall within the final yr. On account of a decline in Solana utilization within the final yr, charges acquired from transactions accomplished by customers on the chain have dropped.
Information from Token Terminal additionally revealed that Solana charges annualized totaled $11.9 million. And the income from the identical amounted to $5.95 million.
