Blockchain News

Solana Records Biggest Loss on One DeFi Metric As BNB Chain Shows Resilience: DappRadar

According to a new report from DappRadar, the collapse of the cryptocurrency market last month caused the total value locked (TVL) on the smart contract platform Solana (SOL) to plummet.

The TVL of a blockchain is the total capital held in its smart contracts. It is calculated by multiplying the amount of collateral locked into the network by the current value of the assets.

The company that collects and analyzes data says that Solana’s TVL fell by 71% from October to November, going from $540 million to $366 million.

At the time of writing, SOL is being sold for $13.70. Since November 1, when it was trading at $32.24, the 18th-ranked crypto asset by market cap has lost more than 57% of its value.

According to the report, Binance Coin (BNB) had the least effect on TVL, with only a 3% drop from one month to the next. BNB’s TVL was worth $4.83 billion.

At the time of this writing, the native asset of the world’s largest crypto exchange platform by volume is trading at $289.96. Since November 1, when it was trading at $324.69, it has dropped more than 10.6%.

Ethereum (ETH), the most popular smart contract platform, saw its TVL drop by 24%. However, with $32.1 billion in total value locked, it is still by far the leader in the decentralized finance (DeFi) space. In October, 61.97% of the market was controlled by Ethereum. In November, that number dropped to 49%.

The total value of the crypto sector fell by 22% to about $65.01 billion.

DappRadar says that the nonfungible token (NFT) market also went down, dropping 7.47% from October to $546 million. The number of NFT sales fell by 22.24% from one month to the next.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.