Now with the second-largest blockchain by total value locked (TVL), Solana has crazy $6.9 billion TVL. Part of this increase in TVL is due to a significant rise in decentralized application (DApps) usage. Furthermore, we have seen a significant increase in deposits across platforms contributing to the broader Solana ecosystem.
First, SOL Solana price jumped 16% in the last week. Consequently, it overtook Ethereum for a short time in decentralized exchange (DEX) activity. As a result, the network has consistently beaten its competitors, Tron, Base, and most recently, Berachain. It climbed an eye-popping 12% over the seven days ending on April 16. Solana's TVL roughly matches the Ethereum layer-2 ecosystem in deposits, highlighting its growing prominence in the decentralized finance (DeFi) space.
In the week ending on April 16, Solana’s DApps activity was an astounding $15.8 billion. This figure beat the cumulative volume of all Ethereum scaling solutions combined by over 50% during that same period. The network’s DEX volumes are off the charts! Deposits on Sanctum, a TicTac implementation of liquid staking, increased by 30%, and Jito and Jupiter saw incredible 20% MoM growth.
Solana's TVL has doubled over the past 30 days, driven by significant increases in volume on platforms like Pump-fun (44%) and Raydium (28%). Exponent, an alternative yield farm protocol, has experienced a massive uptick in activity. This tide of new projects is contributing to the rapid growth of the Solana ecosystem.
Unfortunately for all the good news, it hasn’t been a smooth ride for Solana’s native token SOL (SOL). After hitting $134 on the 14th of April, SOL lost its bullish strength. It didn’t succeed in reclaiming $180, a price point last traded above 45 days ago on March 2. The token remains 57% of its all-time high. This is largely owing to a drop in activity across the board in its DApps.
Analysts aren’t underestimating the recent massive surge in deposits across the Solana network. This uptick may prove to be a tipping point for continued price appreciation in the near future. Speculation is swirling around the approval of the first Solana spot exchange-traded fund (ETF) in the United States in 2025, an event that would be a massive boost for SOL. Moreover, if the US government’s Digital Asset Stockpile plans are implemented, SOL could stand to benefit further.
The positive signs in Solana's ecosystem, including the increase in deposits on Sanctum, Jito, and Jupiter, suggest renewed interest and activity within the network. These factors may contribute to a more positive medium- to long-term picture for SOL. In addition, as discussed below, expected future regulatory developments will only continue to strengthen this positive trend.
