Solana Decentralized Finance Value Locked Soars To New Heights

Solana, a major layer 1 blockchain network, is experiencing a remarkable surge in the value locked within its decentralized finance (DeFi) ecosystem. According to data from DefiLlama, Solana’s total value locked (TVL) has climbed to $4.03 billion, marking its highest level since May 2022. The staggering 97% increase over the past 30 days stands out. It marks the most significant growth among the top 10 DeFi networks ranked by DefiLlama.

Source: DefiLlama

The driving force behind this impressive growth can be attributed to a recent uptick in user activity on the Solana network. According to The Block’s data, Solana’s monthly count of new addresses has hit a record high. Within 21 days, 16.32 million unique first signers have been transacting on the network.

Source: The Block

As a result of this heightened user activity, the total amount of transaction fees paid on Solana soared to a multi-month high of $5.08 million on March 18th. On the same day, DefiLlama’s data showed that protocol revenue derived from transaction fees reached an all-time high of $2.5 million.

Solana: $179 Despite Market Dip; Strong Accumulation

At the time of writing, the SOL token, the native cryptocurrency of the Solana network, was trading at $179, according to CoinMarketCap‘s data. Despite last week’s market decline, demand for SOL still exceeds coin sell-offs among spot market participants.

SOL’s key momentum indicators revealed they were positioned above neutral lines, indicating that daily traders favored accumulation over distribution. For instance, SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI) stood at 61.19 and 80.74, respectively. Additionally, the coin’s positive Chaikin Money Flow (CMF) value of 0.16 signaled an inflow of liquidity into the SOL market.

SOL’s Parabolic SAR (Stop and Reverse) indicator hinted at a steady rise in bearish activity. This mirrored the decline in bullish sentiment in the broader market.

Solana’s DeFi ecosystem continues to thrive, with user activity and value locked, reaching new heights. The blockchain network is positioning itself as a formidable player in the rapidly evolving world of decentralized finance.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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