The SOL price continues to try to recover in August. The Blockchain has a TVL of approximately $1.6 billion.
Solana’s total value locked (TVL) trended higher in July due to renewed interest in the decentralized finance (DeFi) space and other sectors of the crypto industry.
Solana has been one of the best-performing smart contract chains in the last two months.
The Blockchain surged 38%, from $1.55 billion on July 1 to $2.15 billion on July 31, according to research by BeInCrypto based on data from DeFiLlama.
However, let us not forget that as the year began, on January 1, its double-counted TVL was $11.2 billion, while its TVL by August 7 was $8.1 billion.
Solana’s TVL rose in July due to an increase in value locked in decentralized applications (DApps) in its ecosystem.
The liquid staking platform Marinade Finance (which has the largest amount of TVL in Solana), increased by 39% in July, from $245.21 million on the first day to $340.99 million on the last day of the month.
Decentralized lending protocol Solend also soared 41% from $220.08 million on July 1 to $310.74 million on July 31.
Other DApps that made significant contributions to the TVL include, but are not limited to, Serum, Raydium, Atrix, Lido, and Tulip Protocol.
After improving on TVL, Solana follows Polygon, Avalanche, Binance Smart Chain, TRON, and Ethereum. However, it has a higher locked value than Cronos, Optimism, Arbitrum, and Fantom.
SOL Price Reaction
SOL opened on July 1, trading at $33.65, reached a monthly high of $47.10, tested a monthly low of $31.93, and closed the month at $42.40.
Overall, this equates to a 26% increase between the opening and closing price of SOL in July.
Let us remember that a few days ago, Solana experienced a general upturn in select tokens being traded on the network. STEPN’s GMT token tops the chart with over $356.8 million traded, followed by the SRM token at $72.5 million.
Everlend protocol has also posted an update on the Solana lending in the second week of August. The total Solana lending TVL during this period has accumulated at $769.5 million.
What next? Ethereum’s transition to PoS
The near future for Solana next month looks dim, with the upcoming Ethereum’s PoS transition.
The Merge, it is worth noting, is a highly anticipated event that is expected to be a major bullish signal for Ethereum’s PoS chain. While not definitive yet, the change could end up affecting other chains around, with Solana a viable target.
The list of the lending protocols is headed by Solend at $329.49 million as it continues to dominate the proceedings. Mango and Tulip protocols continue to occupy the second and third positions at $231.77 million and $81.5 million respectively.
Among the token performances, Tulip is the only one to show any positive change over the week with a 3.76% surge.
By Audy Castaneda
