Solana TVL reaches record $31 billion... Growth continues despite slowdown in DeFi trading volume

The Solana (SOL) network's total value locked (TVL) has reached an all-time high. Despite a recent sharp decline in decentralized finance (DeFi) trading volume, continued capital inflows are seen as maintaining the growth trend.

According to the digital asset (cryptocurrency) news outlet Block News on the 16th, market data provider Token Terminal reported that Solana's TVL surpassed $31 billion on the 13th. This figure exceeds the $30.8 billion recorded last January.

The growth of the stablecoin USDC and of major protocols is cited as a key driver of the rise in TVL. The volume of USDC operating on the Solana chain exceeds $8.7 billion. In addition, the lending protocol Kamino, aggregator Jupiter, and liquid staking platform Jito together posted a combined liquidity of $10.7 billion. These are interpreted to account for a significant portion of TVL and to be supporting overall network growth.

On the other hand, DeFi trading volume during the same period dropped sharply. Weekly DeFi trading volume reached $103 billion at its January peak, but has recently dropped to $16.9 billion—an 84% decrease. Trading fee revenue also declined from $530 million to $72.3 million. Nevertheless, as capital inflows continue, there are observations that the TVL's upward trend is being maintained.

The outlet forecasted, "Despite short-term sluggishness in DeFi trading, structural growth is being confirmed; thus, if trading volumes rebound, Solana's further upside potential could increase."