Solana’s total value locked (TVL) surged to its highest level since June 2022 even as its native token, SOL, declined 9% between March 28 and April 4. The uptick in deposits signals sustained growth in decentralized finance (DeFi) activity on the network, despite waning investor sentiment following a major token unlock.
On April 2, Solana’s network reached 53.8 million SOL in DApp deposits, a 14% monthly increase. Measured in dollar terms, TVL rose to $6.65 billion—surpassing BNB Chain by $780 million.
The network retained its second-place ranking in both TVL and decentralized exchange (DEX) volumes. However, the price of SOL failed to follow the on-chain momentum, weighed down by the recent release of long-staked tokens.
Four whale addresses that staked 1.79 million SOL in April 2021 unlocked their positions on April 4. Valued at $206 million, the event was described by Arkham Intelligence as “the largest single-day unlock of staked SOL.” The initial stake, worth $37.7 million, had appreciated more than 440% over four years.
Whale Sell-Off Dampens Market Sentiment
Blockchain analytics firms Arkham and Lookonchain reported a wave of sell-offs following the unlock. At least 420,000 SOL—worth approximately $50 million—were offloaded by the whales. One wallet sold nearly 260,000 SOL for more than $30 million, while three others sold $16 million combined.
Despite the sales, the four wallets still hold about 1.38 million SOL, valued at $160 million. SOL’s price fell from $131.11 on April 2 to $114.66, a 12% drop over two days, according to CoinGecko.
The April 4 event followed another large unlock in March when FTX and Alameda Research unstacked over 3 million SOL worth $431 million. Since November 2023, the bankrupt firms have unstaked 7.83 million SOL, selling the tokens for $986 million at an average price of $125.80.
DeFi Metrics Show Resilience
Even amid declining token prices and speculative trading, Solana’s network activity remains strong. DEX volumes reached $963.3 million over 24 hours, and the chain’s market share in DEX trading stood at 24%, according to DefiLlama. That places it ahead of BNB Chain’s 12% and Base’s 10%.
Solana’s top DApps by TVL—Jito, Jupiter, and Kamino—reflect the network’s continued focus on liquid staking, trading, and lending. Meanwhile, daily active addresses reached 3.08 million, suggesting that retail and institutional usage continues despite price volatility.
Debate Grows Over Validator Incentives
Concerns over maximum extractable value (MEV) practices have surfaced as Solana scales its Web3 infrastructure. MEV refers to validators reordering transactions for profit. While not unique to Solana, some users—including DeFi liquidity provider Cbb0fe—warn that such practices risk insider gatekeeping.
Core contributors like Loring Harkness of Shutter Network have proposed encryption of transactions before entering the mempool as a countermeasure. Others argue that MEV revenues alone should suffice as validator incentives, without the need for additional token emissions.
Despite unresolved questions about validator economics, Solana’s $12.59 billion stablecoin market cap, $315.76 million in ecosystem funding, and $22.49 billion in bridged TVL highlight its continued expansion.
