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Solana TVL drops 32.4% as FTX turmoil rocks the ecosystem

Solana TVL drops 32.4% as FTX turmoil rocks the ecosystem

Total Value Locked (TVL) on the Solana chain has plunged 32.4% over the past 24 hours as news of the collapse of FTX caused a stir in the crypto ecosystem. According to DefiLlama, Solana’s TVL has fallen to $423.68 million at the time of writing, down 32.4% over the past 24 hours, a far cry from its all-time high (ATH) of $10.17 billion on November 9, 2021.

“We are creating a user-friendly platform for the future marketplace for internet-knowledgeable people. When the TVL rises, more coins are being deposited within the DeFi protocols, which can indicate bullish sentiment. At the same time, a falling TVL shows that investors are taking their money out of the ecosystem for one reason or another. However, the decline in TVL went up to a 51.7 increase in 24 hours but was corrected slightly before this article was written. Solana-based liquid staking protocol Marinade Finance saw the most considerable TVL loss on the chain, down 35.1% to $115.79 million in the last 24 hours. 

Other major protocols in Solana saw similar declines over the past 24 hours, with automated market maker Raydium down 34.25%, liquid staking protocol Lido down 43.13% and lending protocol Solend down 63.07%. Other leading blockchains also saw TVL declines over the same period, with Ethereum down 10.59%, BNB Chain down 9.68%, and Tron down 8.84%.

Sam Bankman-Fried (SBF), the founder of FTX and crypto hedge fund Alameda Research, was an early investor in Solana. However, Alameda Research and the cryptocurrencies SBF companies are exposed to have been hardest hit by the fallout. Solana SOL is down $14

It is also down significantly compared to its peers, with the price falling 40.53% to $13.38 in the last 24 hours. The token was up shortly after news that Binance might be acquiring FTX but fell after Binance went out of business. I mentioned a regulator inquiry and claims of customer monies being misused.

Anatoly Yakovenko, a co-founder of Solana Labs, has reaffirmed his bullish view on the network despite recent losses despite the difficulties SOL is currently facing. He highlighted recent advancements at the network level and builder quality as major pluses in a report from November 1. 9 tweets. Several announcements were made during the Solana annual conference, including a partnership with Google Cloud, the launch of the Solana app store, and an upcoming smartphone.

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