Solana (SOL) Total Value Locked (TVL) Hit a New High in October, Surpassing $6.1 Billion

TVL refers to the total value of assets deposited by users into a project. A rising TVL is often an indicator of increased user trust and engagement

Solana's (CRYPTO: SOL) total value locked (TVL) in decentralized finance (DeFi) protocols hit a new high in October, surpassing $6.1 billion. This marks the highest level since January 2022.

According to data from DefiLlama, over 40 million SOL tokens are locked in DeFi protocols, as of October 15. This figure has been steadily rising from 14 million SOL at the beginning of 2024.

Solana's TVL Surges As SOL Continues Rally

A rising TVL typically indicates increased user trust and engagement with the platform. In the case of Solana, the increase in TVL is not solely due to the rise in SOL’s market price.

The growing amount of SOL being locked in these protocols indicates increasing user demand for Solana's DeFi ecosystem.

Raydium Contributes To Solana’s TVL With Meme Coin Hype

Data from DefiLlama shows that Raydium, a decentralized exchange (DEX) on Solana, played a major role in driving the platform's TVL to exceed $6.1 billion.

Since the beginning of October, Solana's TVL increased by $1 billion, with Raydium alone accounting for $600 million of that growth.

According to CoinGecko, “DEX trading activity continued to flourish on Solana, buoyed by the multitude of meme coins. It ended September with a 22% market share and $21.5 billion in volume.”

Solana's DEXs saw a surge in trading demand amid the ongoing meme coin craze, which showed no signs of cooling in October. Recent data from Kaito revealed that meme coins hit a new peak in mindshare.

Moreover, CoinGecko's data indicates that the market capitalization of meme coins on Solana surpassed $11.2 billion, with daily trading volume approaching $4 billion.

Solana's Daily Active Addresses Hit New Highs In October

Solana's network saw record-breaking daily active addresses (DAA) in October. According to data from Artemis, on certain days, Solana's network had over 4 million active addresses.

Since September, DAA has consistently remained above 3 million per day on Solana. In October, the platform also saw all-time highs in new addresses.

On some days, over 4 million new addresses were created on Solana, showcasing the platform's demand from new users. The number of new addresses is often used to gauge fresh capital inflows into a project, which is a key driver of price increases for altcoins.

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