Solana Observes Booming December Despite Meltdown in Crypto Market

By: Eliza Bennet

Solana has been witnessing a strong December, overshadowing the price dips experienced by crypto titans like Bitcoin and Ethereum. The Layer 1 blockchain has seen a rapid price recovery this quarter, with SOL's price surge fostering growing interest in its Decentralized Finance (DeFi) offerings. Solana's on-chain metrics unveiled notable upward trends in key areas, suggestive of robust growth, and escalating investor interests.

The total value locked (TVL) in Solana network more than doubled from $671.62 million on Dec. 1 to reach an astounding $1.529 billion by Dec. 26, positioning Solana as the fifth-largest blockchain by TVL. While USD-denominated TVL saw a dramatic increase, the growth in TVL when considered in SOL terms was more modest, rising from 11.35 million SOL to 12.56 million SOL in the same frame. This identifies the impact of SOL’s price hike on the TVL's valuation.

The trading volume on the Solana network also experienced notable fluctuations throughout December, hinting at a period of intense trading activity. However, SOL, which soared past the $100 mark over the weekend, has cooled slightly, trading around $109.20, marking an 11% decrease within a day. In spite of this cooldown, Solana's on-chain activity and volume continue to thrive.

In conclusion, the incredible rise in TVL, both in USD and SOL terms, along with the significant increase in trading volume, reflect a period of increased activity and attraction towards the Solana network. While the SOL's price appreciation has been a significant driver in the realized growth, the underlying on-chain metrics reveal a gradual but steady pursuit and investment in the Solana ecosystem.