- Solana’s Total Value Locked (TVL) escalates by 14% in a month, marking a remarkable recovery.
- While user engagement declined, Solana observed a surge in transaction fees and overall revenue.
Solana’s TVL Recovery Amid a Challenging Backdrop
Solana’s resilience in the blockchain ecosystem became evident when Messari data highlighted a 14% growth in its Total Value Locked (TVL) in the last month. This comes as a breath of fresh air for the network, which underwent a trying phase marked by several exploits and downtimes last year.
Solana managed to grow its TVL last month, as most major chains declined pic.twitter.com/zVwUgy7Mtp
— Messari (@MessariCrypto) August 7, 2023
Starting the year with a TVL of $209.25 million, Solana has displayed an impressive 217% growth, pegging its current TVL at $664 million. While Solana celebrated this ascent, prominent Layer 1 (L1) networks like Ethereum, Binance Smart Chain, and Avalanche recorded TVL dips of 13%, 6%, and 10% respectively.
Zk Sync did more dex volume than Solana last week and Pulse Chain did more than Avalanche pic.twitter.com/4clej4w12q
— Size Chad (@SizeChad) August 8, 2023
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In the realm of Layer 2 (L2) scaling solutions, Arbitrum’s TVL dipped by 7%. Optimism, on the other hand, stood out with a notable 10% increment in its TVL within the same duration.
Solana’s Mixed Fortunes: User Activity Vs. Revenue Growth
Solana’s recent TVL growth has been a significant milestone, yet it’s essential to understand the network’s broader ecosystem dynamics. Token Terminal data showcases a 5% dip in active user activity over the last 30 days for Solana. This reduction is a continuation of the trend observed over the last year, which has been attributed to the chain’s various downtimes and vulnerabilities. Over the past six months, daily user activity receded by 15%, with a steeper 50% decline year-over-year.
Last week, the 1.6% dip in Solana’s user activity manifested in a reduced trading volume across its decentralized exchanges. zkSync, even with its comparatively lower TVL, overshadowed Solana in DEX volume during this phase.
Yet, not all indicators for Solana were gloomy. Solana’s transaction fees and network revenue have been on an upward trajectory. Data extracted from Solscan indicates that the fees for successful non-vote transactions peaked at 53.06 SOL on August 2, marking a substantial upswing from the 31.64 SOL noted a month prior. An encompassing glance at the network’s fees suggests a 50% growth over the month. Mirroring this trend, Solana’s revenue has also ascended, recording a 21% annualized increase.
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