Solana’s (SOL) Total Locked Value (TVL) has surged to a remarkable high of $338.82 million in 2023, leaving the crypto community speculating about the underlying factors behind this impressive growth.
Market analyst Ran Neuner, with a substantial following of 721,800 on X (formerly Twitter), quipped, “Oh, now you all suddenly like $SOL…”
The surge in SOL’s TVL is particularly noteworthy in the past 24 hours, witnessing a substantial increase of approximately 4.15%. This surge propelled SOL’s TVL from $324.64 million to its current peak of $338.82 million.
The year 2023 has been especially kind to SOL, as it has experienced a remarkable 38% increase in its TVL since the start of the year, rising from $210.47 million on January 1.
However, it’s important to note that SOL faced a significant decline in its TVL just over a year ago. In May 2022, reports indicated that SOL had lost a staggering 60% in TVL since the beginning of 2022. On January 1, 2022, Solana’s TVL stood at approximately $11.22 billion, plummeting to around $4.38 billion on May 15.
Amid this impressive TVL growth, there are concerns regarding the potential impact on SOL’s price, as the FTX estate has received approval to liquidate its crypto holdings, including SOL valued at roughly $1.2 billion.
In response to this news, crypto analyst DeFi Squared pointed out that SOL’s price has already surged by 20% since the court approved the estate’s liquidation:
“There are several answers to this, but perhaps the most ridiculous one I want to start with is that crypto markets are just notoriously terrible at pricing in supply distribution events.”
It’s worth noting that the FTX estate currently holds an estimated 17 to 22 million SOL tokens, with a total value of approximately $400 million.
As of the time of publication, SOL is trading at $24.11.
Additionally, it’s crucial to acknowledge that the estate still holds 40 to 44 million SOL tokens, actively invested, with approximately $17 million worth of SOL unlocking every month for the next four years.
