The post Solana’s TVL down by 30% – Can network recover after LIBRA scandal? appeared on BitcoinEthereumNews.com.

Solana’s TVL fell below $10 billion due to the LIBRA rug pull and liquidity outflows Recovery to $10.3 billion still highlighted a nearly 30% decline since mid-January Solana’s [SOL] Total Value Locked recently hit a new low of $9.90 billion, marking an unfortunate milestone for the network. This bout of depreciation, largely attributed to the fallout from the LIBRA rug pull, has fueled concerns over the stability of Solana’s DeFi ecosystem. Although the same has recovered somewhat to hit $10.3 billion, this still represents a nearly 30% drop since mid-January. Needless to say, this has prompted questions about the network’s long-term health and growth. With Solana facing these challenges, all eyes are on how this may impact SOL’s price and broader market sentiment. Solana’s TVL hits new lows Solana’s TVL recorded a sharp decline on the charts, with the latest drop pushing it below $10 billion for the first time since November 2024. This decline follows a broader trend of fluctuating liquidity within Solana’s DeFi ecosystem, a pattern seen during past downturns triggered by protocol exploits and market-wide contractions. Historically, significant TVL declines in Solana have coincided with major sell-offs in SOL’s price. Especially as investor confidence wanes in response to ecosystem instability. In fact, recent data highlighted a steep drop in late January 2025, one largely attributed to the aftermath of the LIBRA rug pull. While Solana’s TVL previously hovered near $12 billion, the nearly 30% drawdown within a month is a stark reminder of the fragility of Solana’s DeFi sector. It’s also a comment on its ongoing struggle to retain locked capital. Security concerns persist amid LIBRA fallout Despite the decline, however, Solana’s TVL rebounded slightly to $10.3 billion, indicating some level of capital inflows. However, the LIBRA rug pull has caused lasting damage, exacerbating concerns about security…

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Filed under: News - @ February 23, 2025 4:08 am