Capital is steadily growing on Solana.
The total value locked (TVL) on the Solana network has crossed $1.8 billion for the first time since 2022, according to data on DeFiLlama.
Activity on Solana has been steadily rising since the end of last year, but the blockchain is still way off its all-time high (ATH) of $10.03 billion TVL, set on November 9, 2021.
Looking at the historical data, today’s milestone is no small feat. Throughout most of early 2022, there was roughly $4 billion locked on the network. It started 2022 with over $6 billion TVL.
That May, Terra’s UST stablecoin collapsed. It was a catastrophe that spread contagion across the industry and dealt a severe blow to crypto’s image. A sudden exodus of funds caused Solana’s TVL to plunge below $1.8 billion by June 16, 2022. It has stayed below this level until today.
Solana’s Price Recovers with TVL
The price of the network’s native token SOL has been climbing all week, according to data by CoinGecko. SOL is up 4.2% in the last 24 hours and 5.6% in the last seven days to trade at $105.19 at the time of writing.
The gains are spurred on by a market-wide rally led by Bitcoin and Ethereum, which in the last week have both climbed 8.5% and 7.2% respectively. The two coins have long dominated the market and it’s a general rule of thumb that when they’re doing well, every leading project is doing well.
Solana’s intraday gains yesterday far outpaced the two, but today the coin’s rally appears to have cooled a little.
Looking at the chart, Solana’s price has been here a few times since New Year, but has trouble breaking out. It has yet to reclaim its post-recession high of $123 set on Christmas Day, 2023, although with a current relative strength index (RSI) of 60 suggests healthy buying activity that is likely to continue.
