Solana's (SOL-USD) Total Value Locked (TVL) Has Plummeted 40% in Just 30 Days, Marking Its Worst Monthly Decline Since the FTX Collapse

Solana's (SOL-USD) total value locked (TVL) has plummeted 40% in just 30 days, marking its worst monthly decline since the FTX collapse, according to DefiLlama. The network's TVL has fallen from a peak of $12.1 billion on Jan. 24 to $7.4 billion. This signals that investors are pulling liquidity and stepping back from DeFi projects.

Solana's (CRYPTO: SOL) total value locked (TVL) has plummeted by 40% in just 30 days, marking its worst monthly decline since the FTX collapse, beginning in November 2022, fresh data from DefiLlama shows.

Solana's TVL has slid from a peak of $12.1 billion on January 24 to $7.4 billion. This signals that investors are pulling liquidity and stepping back from decentralized finance projects on the network.

Major Solana protocols, including Raydium, Jupiter DEX and Jito liquid staking, have all seen double-digit losses in locked funds.

Also Read: How A 12-Year-Old Girl's Video Essay On Crypto Went Viral

Memecoin Frenzy Cools Off, Wiping Out Billions

The memecoin market on Solana has crashed nearly 70%, with valuations plummeting from $25 billion in December 2024 to just $8.3 billion today, according to DefiLlama.

Many Solana-based meme tokens are down 80-90% from their peaks, and daily DEX trading volume has plunged from $22.1 billion on January 19 to just $1.6 billion.

This mass exodus from memecoins has seen network activity and demand for SOL come down sharply.

Solana Price Action: Solana is showing signs of weakness from a technical perspective, forming a bearish double-top pattern with key support at $135.

Losing this level could see SOL tumbling another 20% to reach $110, according to crypto analyst Gum.

However, the relative strength index (RSI) suggests oversold conditions, meaning a bounce could be on the cards if demand picks up at these levels.

At the time of writing, Solana is sitting at $138.60.