Solana‘s decentralized finance (DeFi) sector has seen a remarkable comeback, with its total value locked (TVL) surpassing $2 billion this week.
Solana DeFi Surpasses $2B in TVL
According to data from DefiLlama, DeFi protocols on the high-speed layer-1 blockchain hit a TVL of $2.013 billion on Tuesday, February 20, 2024. Data shows that this figure was recorded last in July 2022.
This figure marks a 15.63% surge from the approximately $1.74 billion recorded two weeks ago.
However, while showing signs of recovery, the Solana DeFi sector is still far from its record high of over $10 billion during the 2021 bull run.
Meanwhile, the DefiLlama data shows that protocols, including Marinade, Jito, Marginfi, Kamino, and BlazeStake, are the major contributors to the $2.013 billion TVL.
Solana’s DeFi Resurgence
The resurgence in Solana’s DeFi sector can be attributed to several factors, including recent airdrops on the network, which have helped to create value and attract more users to the ecosystem.
One of these airdrops is Jupiter’s JUP airdrop, which saw over $700 million worth of JUP distributed to a million wallet holders in late January. JUP is the native token of Jupiter, one of the biggest DeFi protocols on Solana.
In addition to the airdrops, Solana’s high transaction speed and affordability have made it an increasingly attractive option for DeFi developers.
Notably, this resurgence comes despite Solana’s negative association with bankrupt crypto exchange FTX and former CEO Sam Bankman-Fried (SBF). Solana’s ability to bounce back from this challenge is a testament to the strength of its underlying technology and community.
Meanwhile, the latest spike in Solana DeFi TVL failed to rub off on its native token, SOL. Despite the $2 billion surge, SOL dropped by 4.2% on the day to reach $107. The token has also dropped by approximately 4% over the past week.
