Solana’s DeFi space shows potential, but what has investors worried?
- Solana recently announced multiple launches and partnerships.
- Though SOL’s chart was red, a few of the metrics suggested a trend reversal.
Solana [SOL] DeFi’s Total Value Locked (TVL) has fallen sharply over the past year since being at its lowest since February 2021. However, Solana’s relatively stable TVL has provided some relief to the overall DeFi market.
? DeFi TVL Hits a Historic Low ($37.78B): Lowest since February 2021. Not even the FTX and Luna fallout brought it this down.
Recall, $50B TVL vanished from Anchor Protocol, and $50B credit crisis hit 3AC, BlockFi & Celsius.
The remaining likely stems from Solana TVL post-FTX… pic.twitter.com/P98sCVPEwW
— Crypto Thanos (@CryptoThannos) August 23, 2023
Is your portfolio green? Check out the SOL Profit Calculator
Solana’s contribution in the DeFi market
The DeFi market TVL has recently fallen to a historic low of $37.78 billion, surpassing even the FTX and Terra episodes. The remaining value likely stemmed from Solana’s TVL post-FTX tumble, combined with retail investors. At press time, SOL had a TVL of over $1.08 billion.
However, Solana’s DeFi can help move things along with its latest partnerships and launches. The most notable partnership was with Shopify.
Solana Pay’s Shopify integration will allow merchants and entrepreneurs to leverage Web3 payments. This will also allow them to bypass transaction fees and third-party payment processing.
1/ ?️Shopify ?Solana Pay
Today, Solana Pay integrates with @Shopify, empowering the millions of entrepreneurs and merchants on Shopify to accept fast, web3 native payments with no transaction fees through the end of 2023. https://t.co/q63KeBllXB
Learn more ? pic.twitter.com/QEb1LzqS51
— Solana (@solana) August 23, 2023
Another promising launch was the Solana ChatGPT plugin. The newly launched plugin makes it easier to monitor wallet balances, understand transactions, or even explore NFTs.
On top of that, Membrane Finance brought the first euro stablecoin to Solana. This enables new use cases such as foreign exchange, euro-denominated debit card payments, and blockchain-native value storage.
All these developments add much value to the offerings and capabilities of the blockchain, which can reflect on paper in the months to follow.
Membrane Finance brings the first euro stablecoin to Solana – along with card payments!
— EUROe (@EUROemoney) August 23, 2023
Solana’s investors have concerns
Though the blockchain boasted potential, SOL’s performance was underwhelming. According to CoinMarketCap, SOL was down by more than 5% in just the last 24 hours. At press time, it was trading at $20.62 with a market capitalization of over $8.4 billion, making it the ninth-largest crypto.
However, sentiment around the token was high, which was evident from its weighted sentiment and social volume.
Read Solana’s [SOL] Price Prediction 2023-24
Moreover, a few of the metrics looked bullish on SOL, which could initiate a trend reversal soon. For instance, Solana’s latest price drop was accompanied by a decline in its Open Interest.
A drop in the metric is generally followed by a change in price trends. Therefore, there is a chance of SOL’s price chart turning green in the short term.