Challenges Mount for Solana – Here is Whay You Should Know

Solana (SOL) has faced challenges in maintaining its value, struggling to surpass $145 since July 3 amid a broader cryptocurrency market downturn.

The Solana ecosystem has seen various tokens underperforming, contributing to decreased demand for SOL. For instance, DogWifHat (WIF) dropped 24%, while Helium (HNT) and Jito (JTO) both saw 18% corrections from July 3 to July 12.

However, SOL remains the fourth-largest cryptocurrency by market cap, excluding stablecoins, with a valuation of $65 billion.

In comparison, Toncoin, Tron, and Avalanche have market caps of $18.4 billion, $12 billion, and $10.1 billion respectively. Solana’s total value locked (TVL) has closely matched BNB Chain’s since early July, indicating its competitive stance in the market.

Recent data from DefiLlama reveals Solana’s TVL closing the $2 billion gap observed with BNB Chain by the end of 2023. Key contributors to Solana’s TVL include Jito with $1.6 billion in deposits, followed by Marinade and Kamino each nearing $1.1 billion.

Tron holds the second position in TVL with $7.6 billion, driven largely by JustLend, a DeFi platform accounting for 72% of its total TVL.

Concerns remain over JustLend’s security, with 94% of its deposits backed by a Wrapped Bitcoin version lacking robust proof of reserves.

Solana continues to compete closely with BNB Chain for dominance in TVL, underscoring its position in the decentralized finance sector.