Data from DeFi Llama reveals that the funds engaged in DeFi applications on the Solana blockchain have reached $2.062 billion, marking a resurgence to levels last seen in June 2022. In contrast, at the beginning of December, this figure was below $1 billion.
Despite this impressive milestone, Solana’s DeFi sector has yet to reach the peak levels witnessed during the 2021 bull run, where the TVL exceeded $10 billion. Currently, the two leading DeFi projects on Solana are Marinade and Jito, both serving as platforms for staking assets and earning rewards.
Solana, recognized as the blockchain behind the fifth-largest cryptocurrency by market capitalization (SOL), positions itself as a competitor to Ethereum, the second-largest cryptocurrency powered by the ETH blockchain. While Ethereum traditionally hosts numerous DeFi apps, Solana is gaining traction due to its cost-effectiveness and faster transaction speeds.
Recent developments have contributed to the growing popularity of Solana, attracting significant attention from institutional investors and prominent brands such as Visa and Shopify, which have expressed intentions to leverage its blockchain capabilities. Despite concerns related to its association with the collapsed crypto exchange FTX and its founder Sam Bankman-Fried, who has faced legal issues, Solana’s developers continued to enhance the platform, leading to a surge in its value towards the end of 2023.
As of now, the price of SOL stands at $106.79, reflecting a slight decrease of more than 6% in the past 24 hours, according to CoinGecko.
