Solana’s TVL Surpasses $6B for the First Time Since January 2022 – What’s Driving the Growth?

Solana's Total Value Locked (TVL) has surged past $6 billion for the first time since January 2022, reaching a new high after 1,012 days. The milestone is attributed to the consistent growth of Solana's decentralized finance (DeFi) ecosystem despite broader market fluctuations. While some attribute this growth to the rising price of $SOL, which naturally inflates the USD value of TVL, data shows that price appreciation is not the main driver of this TVL growth.

$SOL Locked in DeFi Hits Yearly High

As of now, over 40.72 million $SOL (approximately 8.66% of the total circulating supply) is locked in DeFi protocols on Solana, marking a yearly high for $SOL locked in DeFi.

Data by defillama

This significant number does not include native SOL staking, highlighting the pure DeFi activity on the blockchain, as tokens are committed to lending, decentralized exchanges (DEXs), and liquid staking protocols.

Solana’s On-Chain Activity Powers DeFi Growth

One of the key contributors to this TVL surge is Raydium, Solana's oldest and largest DEX. Raydium has reclaimed its spot as the second-largest protocol by TVL on Solana after flipping Kamino Finance, the biggest lending platform on Solana. Raydium held the dominant position during the Solana DeFi boom of 2021, and its resurgence signals a return to form.

Raydium's revival can be linked to Solana's increasing role as the main chain for on-chain activity this cycle, especially in the meme coin space. With meme coins and other tokens launched on platforms like Pump.fun locking their liquidity on Raydium, the DEX's TVL has flourished.

The total market cap of Solana-based meme coins has surpassed $11 billion for the first time in history, further contributing to this TVL growth.

Solana Dominates DEX Volume Across All Chains

Solana's on-chain DEX activity is also on the rise, with Solana flipping Ethereum and all other chains in 24-hour and 7-day DEX volume.

Solana now commands a 31% dominance across all chains in DEX volume, its highest level in two months, demonstrating accelerating on-chain activity.

Liquid Staking Tokens and Restaking Lead the Charge

Another major driver of Solana's growing TVL is its booming Liquid Staking Token (LST) ecosystem, which has flourished due to increased participation from major centralized exchanges. Both Bybit and Binance have launched their own liquid staking tokens on Solana, adding further momentum. Additionally, the rise of restaking protocols, led by Jito and Solayer, has played a significant role. 

Jito, the leader in liquid staking on Solana, has reclaimed $2 billion in TVL, making it the only Solana protocol with over $2 billion locked. It is also undergoing a rebranding as a restaking giant on the Solana. Solayer, the first restaking protocol on Solana, has also surpassed $204 million in TVL.

The combination of flourishing DEX volume, a robust liquid staking ecosystem, and the resurgence of Raydium has positioned Solana as a leader in DeFi growth. With its total TVL surpassing $6 billion and key DeFi protocols expanding rapidly, Solana is solidifying its status as a major DeFi chain.