Solana’s TVL Surpasses $6B, Highest in Nearly Three Years

The total value locked (TVL) in Solana’s decentralized finance (DeFi) ecosystem has recently exceeded $6 billion, a level not seen in nearly three years. The surge highlights a rise in DeFi activity across the network.

Over 40 million SOL are now locked in different DeFi protocols, making up about 8.66% of the total circulating supply. This count does not include native SOL staking, showing more involvement in lending protocols, decentralized exchanges (DEXs), and liquid staking.

Why the Surge in TVL?

Raydium, the top DEX on Solana, has been a key part of the recent DeFi growth. While it was a major player during the 2021 DeFi boom, Raydium has now regained its position as the second-largest protocol on the Solana network by TVL.

This resurgence aligns with Solana’s growing on-chain activity, particularly in the memecoin sector. Solana-based memecoins now have a total market value of over $11 billion, which has helped boost TVL growth, per CoinGecko.

Solana has also seen a notable increase in its dominance over DEX volume compared to other blockchain networks. It now captures 31% of the global DEX volume, the highest share in two months.

The network’s liquidity staking token (LST) market has further bolstered TVL. Major centralized exchanges (CEXs) like Bybit and Binance have introduced their LSTs on Solana, enhancing the network’s momentum. Additionally, the growth of restaking protocols, led by Jito and Solayer, has contributed to the ecosystem’s metrics.

Jito continues to lead Solana’s liquid staking sector, with its TVL rising above $2 billion, making it the only protocol on the network to hit this mark. Meanwhile, Solayer, a layer-1 restaking protocol on Solana, has grown past $200 million in TVL after rebranding as a restaking platform, further boosting the network’s DeFi capabilities.

Daily Active Addresses in Solana Hit 4M

According to data from Artemis, Solana’s daily active addresses (DAA) reached a new peak in October, with over 4 million active addresses recorded on certain days. Since September, DAA figures have consistently stayed above 3 million per day.

In addition, October saw an all-time high in creating new addresses on the network, with over 4 million new addresses registered daily. The surge in new addresses signals a rise in demand from new users, often suggesting fresh capital inflows into Solana’s DeFi ecosystem.