Solana’s (SOL) total value locked (TVL) has surged to a new 2023 high of $338.82 million today, sparking speculation within the crypto community about the reasons behind why this might be the case.
“Oh now you all suddenly like $SOL…” market analyst Ran Neuner shared to his 721,800 followers on X (formerly Twitter).
Solana’s TVL Witnesses Substantial Year-to-Date Growth
On October 2, SOL’s TVL experienced a 24-hour increase of around 4.15%, surging from $324.64 million to $338.82 million.
Since the beginning of 2023, it has seen a substantial increase of approximately 38%, rising from $210.47 million on January 1.
Some users noticed the increase, but there were comments suggesting that its price still lags behind its annual highs. An X user pointed out that its price is nearly one-third lower than its annual peak
“Solana TVL made new YTD highs today while price is still down 30% from yearly highs.”
However, a little more than a year ago, reports surfaced indicating a sharp decline in SOL’s TVL.
In May 2022, BeInCrypto reported that SOL had lost 60% in TVL since the first day of 2022. On the first day of 2022, Solana had a TVL of approximately $11.22 billion, falling to around $4.38 billion on May 15.
Meanwhile, there are concerns about how SOL’s price could react given FTX estate has been granted approval to liquidate their crypto holdings. The estate holds approximately $1.2 billion worth of SOL.
Solana Price Surge Connected to FTX News
In a post on X, crypto analyst DeFi Squared noted that SOL’s price is up 20% since the court approved the estate’s liquidation:
“There are a couple answers to this, but perhaps the most hilarious I want to start with is that crypto markets are simply *notoriously* terrible at pricing in supply distribution events.”
Furthermore, he clarifies that the FTX estate currently possesses an estimated 17 million to 22 million SOL tokens, with an approximate total value of $400 million.
At the time of publication, SOL’s price is $24.11.
Additionally, he mentions that the estate still has 40 million to 44 million SOL tokens actively staking, with approximately $17 million worth of SOL becoming unlocked each month over the next four years.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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