Driven by rising prices and booming market activity, Solana DeFi is clearly on the road to recovery.
After rising by 38% within two months and increasing by nearly $2 billion, the total locked-up volume of Solana DeFi ( TVL ) has returned to its highest level since Drift Protocol suffered a severe hacker attack. During that attack, $285 million was lost, which also led to a loss of confidence in the security of DeFi among market participants.
Which DeFi protocols are leading the gains and bringing funds back to Solana?
Solana DeFi TVL Return to the level before the Drift hacker incident
Nearly 6 months have passed since one of the largest protocol hacking incidents in history, and DeFi users once again demonstrated a high level of trust in the on-chain economy. Over the past two months, Solana DeFi TVL has risen by more than 38%, reaching $6.5 billion, setting a new high since the Drift Protocol hacking attack. That incident had previously caused a outflow of deposits from the network.
After months of sluggish performance due to falling prices, Solana DeFi is now seeing a recovery. In addition to the rise in TVL, the monthly DEX trading volume of Solana has also returned to levels not seen since February, mainly driven by a surge in memecoin activity recently sparked by more speculative traders in the market.
Of course, a large part of the growth of Solana TVL comes from the increase in the price of $SOL. Over the past two months, the price of $SOL has risen by more than 63%, from $73 to the current $118. During the same period, the network TVL denominated in $SOL decreased by 15.9%, from 65.1 million SOL to 54.7 million SOL.
Although a 15.9% decline may seem concerning on the surface, this drop is likely related to the upsurge in speculation on the blockchain. After several months of slowly generating profits across various DeFi applications within Solana, network participants are now releasing liquidity to trade with the increasingly volatile market on the blockchain.
Earlier this year, after surpassing the previous leaders Kamino and Jupiter, Sanctum has established itself as the largest TVL source for Solana. According to DefiLlama data, Sanctum's TVL has exceeded $2.24 billion, with a growth of over 19.9% in the past 30 days.
The growth trajectory of Sanctum has always been very strong. As the largest liquidity betting infrastructure provider for Solana, Sanctum's TVL, which is priced at $SOL, has continued to rise and has now exceeded 18.78 million SOL.
In terms of DEX, Raydium maintains a clear lead over TVL. According to Blockworks, Raydium currently has a value of slightly over $683 million, which is significantly higher than that of its competitors Meteora and Orca, which are $332 million and $303 million respectively.
To a large extent, this gap can be attributed to the deep and extensive liquidity of memecoin. Before the launch of PumpSwap, Raydium served as the ultimate destination for all pump projects that completed their “graduation” issuance, thus becoming the default trading venue for some of the most representative meme tokens on the network. Recently, tokens issued through Stonk have also found a trading platform in Raydium, further expanding its memecoin ecosystem.
Apart from meme, Raydium's CLMM has recently also become a major trading venue for tokenized stocks, commodities, and other Foreign L1 assets.
This emerging trend is also reflected in the recent revenue growth of Raydium. According to data from 0xInfra, approximately 46% of Raydium's transaction revenue currently comes from tokenized assets.
For further reading
- Pump Regains Dominance
- Pump.fun Reclaims the Leading Position in the Solana Launch Pad Competition
- What happened to Solana last week?
