Solana TVL collapses by 32.4% as FTX turbulence disrupts the ecology.
The most noticeable effects can be seen in the cryptocurrency markets exposed to Sam Bankman-Fried, FTX, and Alameda Research.
As the demise of FTX spread throughout the crypto industry, the total value locked (TVL) on the Solana chain has fallen 32.4% in the previous day.
Solana’s TVL, according to DefiLlama, is currently $423.68 million, down 32.4% in the last 24 hours from its all-time high (ATH) of $10.17 billion on November 9, 2021.
The entire value of all assets locked inside DeFi protocols is measured by TVL. A rising TVL indicates that more coins are being put into the DeFi protocols which can be a positive sign. In contrast, a falling TVL indicates that investors are withdrawing their money from the ecosystem for a variety of reasons.
The loss in TVL reached a maximum of 51.7% during the course of 24 hours, however, it has since marginally recovered as of the time this piece was being written.
The largest decrease in TVL on the chain was seen by the Solana-based liquid staking protocol Marinade Finance, which fell 35.1% to $115.79 million in the previous day.
Similar declines have been observed over the past 24 hours on several significant Solana protocols, including the liquid staking protocol Lido down 43.13%, the lending protocol Solend down 63.07%, and the automated market maker Raydium down 34.25%.
Over the same timeframe, TVL on other top blockchains also fell, with Tron falling 8.84%, Binance smart chain (BSC) falling 9.68%, and Ethereum falling 10.59%.
Sam Bankman-Fried (SBF), the creator of FTX and the cryptocurrency hedge fund Alameda Research, had invested in Solana initially, but Alameda Research and the cryptocurrencies exposed to SBF’s firms have been the most severely affected by the consequences.
In comparison to its rivals, Solana’s token, SOL, has declined significantly as well, with its price dropping 40.53% to $13.38 the previous day.
The token momentarily increased following reports that Binance could buy FTX, but it quickly fell as Binance withdrew from the agreement, citing claims of improper handling of customer funds and regulatory inquiries.
Anatoly Yakovenko, a co-founder of Solana Labs, has reaffirmed his bullish attitude on the network in spite of recent losses faced by SOL.
In a tweet on November 9, he highlighted the caliber of builders and recent network-level advancements as significant advantages.
A number of announcements were made during Solana’s annual conference, including a collaboration with Google Cloud, the opening of the Solana App Store, and a forthcoming smartphone.