In the dynamic world of decentralized finance (DeFi), Solana’s ecosystem is showing promising signs of revival. Despite trailing behind Ethereum in terms of total activity, recent data points to a significant uptick in both DeFi and network activity on Solana.
A key indicator of this growth is the doubling of weekly active addresses on Solana since December 2022. According to Ally Zach, Messari reporter, these numbers have now returned to levels seen before the FTX collapse. This increase in address activity marks a critical turnaround for the platform, which had faced a period of stagnation.
Moreover, DeFi activity on Solana is also on the rise. This is primarily driven by a series of airdrop announcements that have rejuvenated interest in the platform. DefilLama reports that since early November, Solana’s Total Value Locked (TVL) has surged by approximately 47%, reaching $1.19 billion. This figure also mirrors pre-FTX collapse levels, indicating a strong recovery trajectory.
However, it’s crucial to note that Solana’s DeFi sector still faces challenges. It remains 89% below its peak TVL of nearly $10 billion two years ago. In comparison, the overall DeFi market’s TVL is down by about 74% from its all-time high. These statistics highlight the relative lag in Solana’s recovery in the broader DeFi landscape.
In addition to DeFi, consumer-based applications on Solana have seen increased activity, although user engagement has not reached its peak levels of June. NFT trading volumes have remained steady since September but are significantly lower than their highest points.
The price of Solana’s native token, SOL, reflects this mixed picture. While the network is showing signs of recovery, SOL’s price has seen relative gains following a steep decline due to its association with the FTX collapse. As of today, SOL is trading at $62.39, with a market cap of over $26 billion.
This emerging growth in Solana’s ecosystem, coupled with its resilience, suggests a potential for further expansion and development. While it’s yet to match Ethereum’s level of activity, the increasing engagement and positive trends in DeFi and network activity indicate a promising future for Solana. Consequently, this could mark the beginning of a long-awaited recovery and renewed interest in the platform.
