Significant Growth in Total Value Locked
The total value locked (TVL) in Solana’s decentralized finance (DeFi) ecosystem has exceeded $6 billion. This milestone marks the first time the TVL has reached this level in nearly three years.
The increase in TVL indicates a rise in DeFi activity within the Solana network. Currently, over 40 million SOL tokens are locked across various DeFi protocols. This represents approximately 8.66% of the total circulating supply. Importantly, this figure does not include native SOL staking, highlighting a robust engagement in lending protocols, decentralized exchanges (DEXs), and liquid staking initiatives.
Raydium Emerges as a Leading Protocol
The revival of DeFi on Solana is largely driven by Raydium, the first DEX on the platform. Raydium, which was a dominant player during the DeFi boom in 2021, has regained its position as the second-largest protocol by TVL on Solana. This resurgence coincides with Solana’s increasing presence in on-chain activities, particularly in the rapidly growing meme coin sector. The total market capitalization of Solana-based meme coins has surpassed $11 billion, significantly contributing to the growth in TVL.
Solana Dominates DEX Volume
Solana’s dominance in DEX trading volume has also seen a remarkable increase compared to other blockchain networks. The platform now accounts for 31% of global DEX volume, the highest level in two months.
Contributions from Liquidity Staking Tokens
The liquidity staking token market on Solana has played a crucial role in boosting the TVL. Major centralized exchanges (CEXs) like Bybit and Binance have launched their liquidity staking tokens (LSTs) on the network, further driving momentum. Additionally, the rise of restaking protocols, led by Jito and Solayer, has enhanced the metrics of the ecosystem.
Jito and Solayer Lead Liquid Staking
Jito, a leader in Solana’s liquid staking sector, has surpassed $2 billion in TVL, making it the only Solana protocol to reach this threshold. Meanwhile, Solayer, which has rebranded itself as a prominent restaking protocol on Solana, continues to grow and maintain a TVL above $200 million. This development adds diversity to the DeFi offerings on the network.
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