Solana’s resurgence in the decentralized finance (DeFi) sphere persists as its Total Value Locked (TVL) reached $338.82 million on Monday, marking a significant milestone since the start of the year, as reported by DefiLlama data. While this metric is somewhat simplistic, it offers insights into the capital flowing through various DeFi applications on the network.
Solana’s TVL witnessed a notable increase of approximately 4.15%, surging from $324.64 million on Sunday to its 2023 peak on Monday. This upswing is driven by popular projects developed on the Solana blockchain, including Drift, marginfi, Solend, and others.
Nevertheless, it’s essential to acknowledge that these figures still fall short of Solana’s peak during the previous bull market. In November 2021, Solana’s TVL soared to just over $10 billion before experiencing a sharp decline. In January 2023, it hit a low point of $210 million.
Now, concerns are arising regarding the potential impact on Solana’s price following the approval for the FTX estate to sell its cryptocurrency holdings. The FTX estate reportedly holds approximately $1.2 billion worth of SOL tokens. According to analysts at The Tie, a substantial portion of this, about 22 million SOL tokens valued at roughly $400 million, is now unlocked and available for sale, constituting nearly 4% of Solana’s total supply.
Additionally, there are between 40 million to 44 million SOL tokens, equivalent to approximately $860 million, currently staked. Furthermore, an additional $17 million worth of SOL tokens are set to unlock every month for the next four years.
Solana was one of the projects heavily affected by the FTX collapse. In a November 2022 blog post, the Solana Foundation disclosed its financial connections with FTX, including around $1 million in cash or similar assets with FTX until November 6, 2022. Importantly, this amount represented less than 1% of the foundation’s total funds.
In addition to cash holdings, the Solana Foundation also possessed approximately 3.24 million shares in FTX Trading LTD, as well as about 3.43 million FTT tokens and 134.54 million SRM tokens from Project Serum, a decentralized exchange on Solana launched by Sam Bankman-Fried in 2020.
As Solana’s TVL continues its upward trajectory and the FTX estate begins selling its SOL holdings, the cryptocurrency community will closely watch for potential impacts on Solana’s price and overall market sentiment.
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