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.

READ MORE:

Here is Why Ethereum ETF Could be a Big Deal for Crypto

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.

Alexander Stefanov