The total value locked (TVL) of Solana continues to fall in the third week of May, owing to unfavourable market conditions that have seen decreased interest in decentralised finance (DeFi).
In the previous 18 months, Solana has been one of the most successful crypto projects. Solana has registered a 60% decline in total value locked since the beginning of 2022, according to data.
Solana had a TVL of around £9.16 billion on January 1, but it had dropped to around £3.57 billion on May 15.
Solana is a decentralised blockchain that enables the development of scalable and user-friendly applications. It has dozens of projects under Web3, non-fungible tokens (NFTs), and DeFi, making it the fastest growing ecosystem in the crypto finance industry.
This week, Solana TVL hit new lows due to decentralised applications (dApps) in its ecosystem hitting new lows.
Solend, a decentralised loan and borrowing platform, has dropped more than 8% in the previous month, while Tulip, a yield aggregation platform, has lost more than 11% of its TVL in the same period.
Marinade Finance, a staking platform, and Serum, a decentralised exchange (DEX) protocol, have lost more than 48% and 42% of their entire value locked, respectively.
Atrix, Francium, Mango Markets, Orca, Quarry, Raydium, and Saber are among the dApps that have contributed to the drop in total value locked.
Solana has retained its place as the fourth blockchain with the highest value locked despite a drop of over £4.90 billion.
Meta Platforms has chosen Solana as one of the blockchains whose non-fungible tokens (NFTs) would be linked with Instagram. Polygon and Ethereum are two other systems mentioned for this integration.
SOL opened to trade at £139 this year, climbed to a yearly high of £146 on Jan. 2, and closed at £45.2 on May 15. Overall, the price of SOL has dropped by 67% since the beginning of the year.