VOT Research Desk
Market Analytics and Considerations
In November of last year, decentralized finance (DeFi) applications stored more than $10 billion on the Solana network. High-profile supporters of the network include Multicoin Capital, Sino Global Capital, and the founder of the FTX crypto exchange, Sam Bankman-Fried.
After a year, the total value locked (TVL) has decreased to just over $300 million, with Multicoin and Sino Global reporting multimillion-dollar losses, the Solana Foundation itself losing “tens of millions,” and FTX filing for bankruptcy and facing prosecution.
FTX declared bankruptcy and was charged with fraud, costing tens of millions. Solana’s reputation declined after Bankman’s passing due to his significant support for the network. Fried’s On Twitter, he once made the contentious remark to a cryptocurrency dealer: “I’ll spend $3 for the exact same SOL as that presently possess. The native cryptocurrency of the blockchain, he said, “then allow me free.
Sentiment has been impacted by the demise of famous Solana supporter Sam Bankman-Fried, which has significantly diminished the value from its DeFi applications. (DeFiLlama)
The price of SOL has contributed to a decrease in the $10 billion TVL on Solana over the past year, but the last two weeks have been more drastic.In comparison to the $1 billion in TVL on Nov. 2, when CoinDesk first reported on the collusion between FTX’s treasury accounts and Alameda Research, a sister company, more than $700 million has left Solana-based applications.
That decline can be attributed to the 50 percent price drop in SOL and related DeFi tokens.
Both in terms of value and percentage, the lending and borrowing platform Solend suffered the most.
On November 2, it held more than $280 million, and it now has less than $30 million. Stablecoins, wrapped bitcoin tokens, and Solana-based tokens have all left the protocol, according to the data.
