The total value locked (TVL) in Solana (SOL) network’s decentralized finance (DeFi) ecosystem stood at $330 million as of Nov. 14 — signifying a drop of 96.75% from a peak of $10.17 billion in December 2021, according to DeFiLlama data.
TVL in Solana DeFi progressively fell throughout 2022, driven by SOL’s dropping value and the larger market downturn. Since the beginning of 2022, TVL in Solana has decreased by 95%.
Additionally, over the past week alone, TVL on the network has tanked by 63.21%.
The decline in TVL accelerated when questions over FTX’s liquidity arose at the start of November. Since then, FTX has filed for bankruptcy and former CEO and founder Sam Bankman-Fried (SBF) — who widely advocated for Solana — has left the exchange.
SBF’s deteriorating public image amid the FTX bankruptcy and allegations of misusing user funds has also impacted the sentiment around Solana. The Solana Foundation has assets worth over $30 million locked on FTX.
The Foundation also claims that the largest DeFi projects on Solana have “limited or no exposure” to FTX, based on its assessment. However, it added that there are several Solana projects impacted by the FTX collapse that are working on potential solutions.
Among the top DeFi projects on Solana, lending platform Solend lost 87.6% of its TVL over the past week and currently has roughly $30 million locked in the protocol compared to $284.33 million on Nov. 2, DeFiLlama data shows.
Liquid staking protocol Lido lost 71.77% of its TVL over the week, from $7.59 billion on Nov. 8 to $6 billion at the time of writing. Meanwhile, staking protocol Marinade Finance lost 54.73% of its TVL over the week.
Decentralized exchanges Raydium and Orca have lost 50% and 28.05% of their TVL over the past week, respectively, as per DeFiLlama data.