SOL price stalls despite Solana’s DeFi TVL nearing record highs
Solana’s DeFi ecosystem has seen explosive growth, nearing all-time high levels, but SOL continues to lag behind.
- Solana’s DeFi TVL is at $11.725 billion, nearing its all-time high in January
- Despite that, SOL price is lagging behind, far from the January ATH
- DeFi metrics suggest that SOL may continue to lag behind its DeFi ecosystem
Solana (SOL) is attracting near-record amounts of capital, but its price continues to lag behind. On Thursday, August 28, the total DeFi value locked on Solana reached $11.725 billion , near the record figures in January. At the same time, the total stablecoin market cap was at $12 billion, while bridged TVL amounted to $42 billion.
Solana’s DeFi TVL and stablecoin market cap | Source: DeFiLlama
Yet despite strong metrics, SOL’s price is still hovering around $200, far below its January ATH at $294.33. At the time, Solana’s DeFi TVL was near its current August peak, suggesting that DeFi TVL and the price have started to diverge.
Why SOL price lags behind its DeFi ecosystem
At the same time, the fees generated on Solana remain at a relatively modest $1.68 million daily. This is far from the record $28.89 million in January. Low on-chain revenue is the likely reason why SOL lags behind the growth of its DeFi ecosystem.
On-chain fees on Solana | Source: DeFiLlama
Currently, much of Solana’s ecosystem activity goes through platforms that prioritize low cost. This includes DEX aggregators like Jupiter, which accounts for much of the trading activity on Solana. For these protocols, high TVL equals higher liquidity and better trading conditions.
Still, this does not translate to higher revenue for the Solana network, which is one of the key metrics for Solana’s price performance. Higher revenue translates to higher staking rewards, making Solana more valuable. Due to gains in efficiencies, SOL will likely continue to lag behind its DeFi TVL, at least until fees pick up.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
NMR +240% in 24 Hours as Liquidity Mechanisms Fuel Rally
- NMR surged 240% in 24 hours to $10.85, driven by upgraded on-chain liquidity mechanisms and a new AMM boosting cross-chain swaps and DeFi utility. - Institutional and retail investors flocked to NMR as the AMM improved price discovery and slippage, supported by a recent smart contract audit. - Technical indicators show NMR breaking key resistance, with RSI overbought but MACD bullish, as traders watch the $8.20–$11.50 range for potential pullbacks. - Strong on-chain accumulation, stable long-term holders
Bitcoin News Today: Bitcoin-Powered Shift: AirNet Reimagines Itself as Crypto-Backed Hybrid
- AirNet Technology raised $90M in digital assets (819.07 BTC, 19,928.91 ETH) via a registered direct offering, shifting to a crypto-backed hybrid model. - The deal, accepting digital assets instead of fiat, restructures AirNet’s balance sheet and business model, offering shareholders equity and crypto exposure. - The company hires crypto experts to actively manage assets, positioning itself as a rare public crypto fund amid regulatory and volatility risks. - Institutional adoption and reduced Bitcoin vola
Bitcoin News Today: Bitcoin Miner's Nasdaq Leap: A Game of Splits and Splits
- Gryphon Digital Mining shareholders approved a merger with American Bitcoin, creating a Nasdaq-listed entity under ticker ABTC via a stock-for-stock deal. - A 5-for-1 reverse stock split reduced shares from 82.8M to ~16.6M to meet Nasdaq bid price rules, with automatic rounding of fractional shares. - American Bitcoin, rebranded from a data center firm, aims to build a BTC treasury and leverages the merger to bypass IPO for public market access. - Post-merger volatility saw Gryphon's stock drop 10.5% aft
Whale Moves and Golden Cross Set ADA's $0.90 Showdown
- Cardano (ADA) nears $0.90 resistance after forming a golden cross and 120M whale accumulation, signaling potential bullish momentum. - Technical indicators show neutral RSI (50.50) and bearish MACD divergence, suggesting possible short-term corrections ahead. - Regulatory delays for Grayscale ADA ETF haven't dampened bullish sentiment, with institutional buying and new U.S. retail access via Robinhood. - A decisive $0.90 break could target $1.02 psychologically, while failure risks testing $0.77 support
Trending news
MoreCrypto prices
More
