The total value locked (TVL) on the smart contract blockchain Solana has been remaining above the $9 billion mark over the last few weeks, at a time in which the trading volume on its decentralized exchanges started plunging.
Data from DeFiLlama shows that the total value locked on Solana first crossed the $9 billion mark in late November, and while it has failed to break through the $10 billion threshold, it has remained relatively stable since.
The same source shows that trading volumes meanwhile exploded during the month of November, from around $2 billion a day to a new all-time high of $7 billion registered on November 18, before volumes started plunging.
The plunge has seen trading volumes on decentralized exchanges more than halve to now stand around $3 billion, while total value locked remains steady.
Along with the declining decentralized exchange trading volumes, so have protocols’ revenues been dropping, as smaller trading volumes means less fees are collected. Decentralized exchange volumes plunged after Pump.fun, a platform allowing users to launch new tokens without needing to code, dropped a livestream feature that suffered from moderation issues.
Solana’s price stalls
Solana’s price has also been somewhat resilient to the slowdown. The cryptocurrency’s price initially surged from $215 to a $260 all-time high as trading volumes were elevated, but has since endured a slight correction to now stand at $216. Over the past month, while trading volumes plunged, SOL’s price is up a modest 0.5%.
The cryptocurrency’s price has seemingly stalled while other major digital assets keep on rising, with Bitcoin recently topping the $106,000 level for the first time ever, and Ethereum moving above $4,000 to now stand at $4,050.
Meanwhile XRP has consolidated its position as the third-largest cryptocurrency by market capitalization, rising 6% over the past week to now trade at $2.5 per token.
