Over $500M flew out of Solana in a week, DeFi TVL down 63% News ▸ FTX ▸ Solana ▸ Bear Market
Over $500M flew out of Solana in a week, DeFi TVL down 63%
While the total value locked in Solana DeFi has been falling throughout the year, it accelerated since the collapse of FTX.
1 min read
Updated: Nov. 15, 2022 at 2:18 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The total value locked (TVL) in Solana (SOL) network’s decentralized finance (DeFi) ecosystem stood at $330 million as of Nov. 14 — signifying a drop of 96.75% from a peak of $10.17 billion in December 2021, according to DeFiLlama data.
TVL in Solana DeFi progressively fell throughout 2022, driven by SOL’s dropping value and the larger market downturn. Since the beginning of 2022, TVL in Solana has decreased by 95%.
Additionally, over the past week alone, TVL on the network has tanked by 63.21%.
The decline in TVL accelerated when questions over FTX’s liquidity arose at the start of November. Since then, FTX has filed for bankruptcy and former CEO and founder Sam Bankman-Fried (SBF) — who widely advocated for Solana — has left the exchange.
SBF’s deteriorating public image amid the FTX bankruptcy and allegations of misusing user funds has also impacted the sentiment around Solana. The Solana Foundation has assets worth over $30 million locked on FTX.
The Foundation also claims that the largest DeFi projects on Solana have “limited or no exposure” to FTX, based on its assessment. However, it added that there are several Solana projects impacted by the FTX collapse that are working on potential solutions.
Among the top DeFi projects on Solana, lending platform Solend lost 87.6% of its TVL over the past week and currently has roughly $30 million locked in the protocol compared to $284.33 million on Nov. 2, DeFiLlama data shows.
Liquid staking protocol Lido lost 71.77% of its TVL over the week, from $7.59 billion on Nov. 8 to $6 billion at the time of writing. Meanwhile, staking protocol Marinade Finance lost 54.73% of its TVL over the week.
Decentralized exchanges Raydium and Orca have lost 50% and 28.05% of their TVL over the past week, respectively, as per DeFiLlama data.
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Author 
Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
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Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
