The Solana network hit a new all-time high on the Total Value Locked (TVL) in Defi, on its blockchain, with increasing institutional demand.
The Solana TVL hit a new all-time high of $12.44 billion, surpassing its previous all-time high, which it set in 2023. The TVL of the network moved slightly above its previous all-time high of 12 billion, establishing a new all-time high. According to Defilama, an on-chain analytical platform, the platform gained more than 25% during the past 30 days.
What does an increase in TVL mean?
What does it mean when TVL goes up?
The Total Value Locked (TVL) is the total amount of cryptocurrency that has been put into a DeFi protocol. It shows how much money users are putting into the project, usually through staking, lending, providing liquidity, or putting up collateral. This value going up means that:
Trust and reliability
A high TVL means that a lot of people trust the protocol enough to put their money there. It shows that people have faith in the market and helps bring in new users or investors.
Usefulness and liquidity
More locked assets mean more liquidity.This means that trades will have less slippage, lending and borrowing will be more stable, and users will generally have a better experience.
Making money and being environmentally friendly
Protocols often make money by trading, lending, or yield farming.A higher TVL usually means that the project will make more money and, in some cases, that token holders or stakers will get better rewards.
Valuation and market perception
- Analysts often compare a project’s Market Cap / TVL ratio to assess if it’s over- or undervalued.
- A very low ratio can suggest the token is undervalued relative to the assets it secures.
8 top institutions on Solana have more $1 billion TVL
When it comes to institutional demand, many projects at the top gained value by two digits during the past month. Out of the top 10 projects with the highest TVL, 8 projects have locked over $1 billion in Solana. Among these 8 projects, 7 have gained value by double digits over the past month.
Jupiter captured the first place with a TVL of $3.4 billion, Jito was second to only Jupiter, with $3.3 billion staked, while Kamino took third place with $3.26 billion.
Sighting the increase in the TVL, a crypto netizen requested the crypto community to hold their SOL tokens as “with treasury buys, upgrades, and a bold 2025-2027 roadmap, $SOL is set for liftoff from $218 toward $230.”
