The Total Value Locked (TVL) in Solana (SOL) is showing signs of approaching the peak levels seen before the FTX events. Recently, for the first time in over a year, it has reached a significant TVL level again. Now, the most curious question among investors is whether this level will be sustainable or not.
Solana’s TVL Trends Towards Pre-FTX Levels
According to the Total Value Locked (TVL) analysis based on DefiLlama data for Solana, there has been a gradual increase in TVL value starting from October 2023, with significant progress noted in December 2023. Before the increase in October, the TVL value was only around 350 million dollars, while in December, it rose to the level of 1.4 billion dollars.
By December 20th, the TVL value had increased to 2.069 billion dollars. This value was significant as it marked the first time TVL had surpassed the 2 billion dollar level since June 2022.
Moreover, the recovery of the Solana network and SOL after the decline associated with the FTX debacle indicated a rebound, marking the first time Solana had reached this TVL since then. At the time of writing, the Total Value Locked (TVL) had fallen back below 2 billion dollars to a level of 1.9 billion dollars, which could suggest a lack of sustainability in TVL.
Solana Price Drop Alarms Investors
When examining the volume shared on DefiLlama for Solana, it appears that this indicator has been increasing recently. Despite a small decline on February 17th, there was a notable increase on February 20th. At the time of writing, the volume was above 765 million dollars.
The high volume could be interpreted as a sign of increasingly noticeable activity on the Solana network, with various chains within the network contributing to this.
If we look at the price of Solana, on February 14th, it had risen above 117 dollars, reaching a seasonal peak, but then began to fall. In the last three days, a 7% drop has unsettled investors. At the time of writing, it was finding buyers at the level of 101 dollars after experiencing a drop of over 4%.
