Solana’s (SOL) total value locked (TVL) has surged to a new 2023 high of $338.82 million today, sparking speculation within the crypto community about the reasons behind why this might be the case.
“Oh now you all suddenly like $SOL…” market analyst Ran Neuner shared to his 721,800 followers on X (formerly Twitter).
Solana’s TVL Witnesses Substantial Year-to-Date Growth
On October 2, SOL’s TVL experienced a 24-hour increase of around 4.15%, surging from $324.64 million to $338.82 million.
Since the beginning of 2023, it has seen a substantial increase of approximately 38%, rising from $210.47 million on January 1st.
However, a little more than a year ago, reports surfaced indicating a sharp decline in SOL’s TVL.
In May 2022, BeInCrypto reported that SOL had lost 60% in TVL since the first day of 2022. On the first day of 2022, Solana had a TVL of approximately $11.22 billion, falling to around $4.38 billion on May 15.
Meanwhile, there are concerns about how SOL’s price could react given FTX estate has been granted approval to liquidate their crypto holdings. The estate holds approximately $1.2 billion worth of SOL.
Solana Price Surge Connected to FTX News
In a post on X, crypto analyst DeFi Squared noted that SOL’s price is up 20% since the court approved the estate’s liquidation:
“There are a couple answers to this, but perhaps the most hilarious I want to start with is that crypto markets are simply *notoriously* terrible at pricing in supply distribution events.”
Read more: What Is Solana (SOL)?
Furthermore, he clarifies that the FTX estate currently possesses an estimated 17 million to 22 million SOL tokens, with an approximate total value of $400 million.
At the time of publication, SOL’s price is $24.11.
Additionally, he mentions that the estate still has 40 million to 44 million SOL tokens actively staking, with approximately $17 million worth of SOL becoming unlocked each month over the next four years.
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