Solana’s TVL Skyrockets to 2023 High, Sparking Fresh Speculation and Bullish Momentum
Solana’s total value locked (TVL) hit a new high for 2023 at $338.21 million. A year riddled with ups and downs, this move offers a glimmer of positivity for Solana enthusiasts.
Just yesterday, Solana’s TVL jumped 4.15% from $324.64 million, marking a year-to-date (YTD) increase of about 38% from its January 1 level of $210.47 million. However, these figures can’t erase the dramatic 60% loss in TVL Solana witnessed from the beginning of 2022, falling from an awe-inducing $11.22 billion to a concerning $4.38 billion in May.
Speculations Surrounding FTX Estate Liquidation
The spotlight on Solana intensified after the court-approved liquidation of the FTX estate, which holds around $1.2 billion in SOL. Crypto analyst DeFi Squared noted on X that SOL’s price soared 20% since the legal green light. He added, “Crypto markets are notoriously terrible at pricing in supply distribution events.”
The estate currently has an estimated 17 million to 22 million SOL tokens worth around $400 million. The tokens are expected to get unlocked at about $17 million worth of SOL per month for the next four years.
Indicators of a Possible Bull Run?
While its current TVL recovery is noteworthy, it pales compared to Solana’s 2021 peak of over $10 billion. Yet, the YTD growth of roughly $116 million in its TVL could lead to a more bullish trend.
SOL itself showcased its most bullish week since mid-July, gaining a stunning 29% in just the last seven days and an impressive 65% from its lowest 2023 price level. This price performance correlates positively with Solana’s TVL growth, providing hope for a more extended bullish market ahead.
A Growing Development Ecosystem
Not to be overshadowed, Solana’s on-chain data indicates a rapid development landscape. Development activity has been on a steady incline since its September low. Plus, LayerZero Labs’ CEO confirmed work on a Solana bridge to facilitate liquidity flow from Ethereum, boosting optimism in the community.
However, it’s not all sunshine and rainbows. The Weighted Sentiment metric remains at one of its lowest levels in the last four weeks, suggesting that SOL has yet to regain peak investor confidence fully. If development activity and market sentiment continue to improve, Solana could well be on its way to reclaiming its past glory.
