Solana DeFi TVL Climbs Back to Highest Point Since Drift Hack

Buoyed by rising prices and booming market activity, Solana DeFi is well and truly on the road to recovery. 

After climbing 38% and amassing just under $2B in two months, Solana DeFi TVL has returned to its highest level since the devastating Drift Protocol hack, which saw $285M, and confidence in DeFi security, flood out of the network.

Which DeFi protocols are leading the charge and bringing capital back to Solana?

Solana DeFi TVL Returns to Pre-Drift Hack Levels

Almost 6 months after one of the largest protocol hacks in Solana history, DeFi users are once again showing high trust in the onchain economy. Climbing over 38% in the past two months, Solana DeFi TVL has risen to $6.5B, marking its highest point since the Drift Protocol hack, an event that triggered deposit flight across the network.

After wallowing in a pit of price-induced despair for many months, Solana DeFi is enjoying its own renaissance. Alongside rising TVL, Solana monthly DEX volume is back to levels not seen since February, driven largely by a recent surge of memecoin activity among the network’s more speculative traders.

Naturally, much of Solana’s TVL growth is driven by rising $SOL prices. In the last two months, $SOL has climbed over 63%, rising from $73 to currently exchange hands at $118. During the same time period, the network’s $SOL-denominated TVL has slumped 15.9%, falling from 65.1M $SOL to 54.7M $SOL.

While the 15.9% decline looks concerning on paper, the fall is likely due to the speculative fervor sweeping the chain. After months of generating slow yield through Solana’s various DeFi apps, network participants are freeing up liquidity to trade rising volatility in onchain markets.

Sanctum Leads Rankings Despite Declining Liquid Staking Rates

Having flipped former leaders Kamino and Jupiter earlier this year, Sanctum has established itself as Solana’s largest source of TVL. According to DefiLlama, Sanctum has amassed over $2.24B in TVL, climbing over 19.9% in the last 30 days.

Sanctum’s growth trajectory has been relentless. Solana’s largest Liquid Staking infrastructure provider, Sanctum’s $SOL-denominated TVL has consistently trended upwards in perpetuity, rising to over 18.78M $SOL.

Sanctum’s impressive growth comes in the face of a declining liquid staking rate across the wider network. According to Blockworks data, the share of staked $SOL that is currently liquid has dropped from over 15.7% in January to 12% today.

On the DEX front, Raydium boasts a strong lead in TVL terms. Blockworks reports that Raydium’s current TVL sits at just over $683M, considerably higher than rivals Meteora and Orca, with $332M and $303M, respectively.

Arguably, the difference comes from Raydium’s deep and expansive memecoin liquidity. Prior to the launch of PumpSwap, Raydium’s AMM served as the final destination for all graduating pump launches, making it the default trading venue for some of the network’s most iconic memes. More recently, tokens launched through Stonk have also found a home on Raydium, adding to its memecoin orbit.

Beyond memes, Raydium’s CLMM has more recently emerged as the primary venue for tokenized stocks, commodities, and other Foreign L1 assets.

This emerging trend is further reflected in Raydium’s recent revenue growth. According to 0xInfra, ~46% of Raydium’s trading revenue now comes from tokenized assets. 

Read More on SolanaFloor

Pump is back in the driver’s seat

Pump.fun Reclaims Lead in Solana Launchpad Race

What Happened Last Week on Solana?