Data from DeFiLlama has shown that the total value lock (TVL) of all Decentralized Finance (DeFi) projects based on the Solana network have now been valued at $12.7 billion, indicating a new record high.
In crypto, TVL is a short form of Total Value Lock. It is the metric for measuring the pool of money locked on a particular protocol. It could be collateral held, simple deposits or liquidity pools.
Per the data, Raydium’s project, which is a notable decentralized exchange built on the Solana blockchain, accounts for the largest share of the total value lock, dominating with $1.8 billion, representing 14% of the entire TVL of $12.7.
Currently, no fewer than six protocols that are Solana based have their total value locked above $1 billion. And very soon, more projects, precisely over 500 new ones, would be hosted on the network during its upcoming hackathon, Ignition. The possible arrival of the new DeFi would further spike the TVL in future.
Submissions for the IGNITION Hackathon are closed, with 568 projects formed.
It is worth adding that all DeFi projects based on Solana require users to hold the network native cryptocurrency, SOL. Just like every other network, users would pay a network fee using the native token.
For example, a transaction on Raydium would attract a fee for the speculators who would pay with SOL. Interestingly, the Solana network fee is way much lower than Ethereum, notable for the high gas fee. Data from Solana Beach shows that most of the network transactions cost about 0.000005 SOL (equivalent to $0.00095985).
The news of this record high regarding it TVL was accompanied by Solana native cryptocurrency, SOL, which jumped by 24% in the last 24hours.