Even after the bankruptcy of FTX and its sister firm Alameda Research, which were prominent SOL proponents and severely harmed the network’s reputation, the total value locked (TVL) on the Solana ($SOL) network has increased by more than 26.5% since the beginning of the year to surpass $259 million.
The total value locked on the network is much lower than the all-time high of $10 billion seen during the 2021 bull run, but the growth is a “good sign for the ecosystem when given the myriad hurdles it has experienced,” including periodic outages.
According to the current Asset Report from CryptoCompare, the good trend is strengthened when comparing Solana’s growth to that of other blockchains. With the exception of Kava, SOL outperformed the competition while excluding Ethereum ecosystem chains and those with less than $100 million in total value locked.
In March, Kava’s total value locked increased by more than 36.5%, outpacing Solana’s 16.5% growth and Tron’s 11.4% rise. At the same time period, BNB Chain, the blockchain maintained by prominent cryptocurrency exchange Binance, increased by 6.15%.
Meanwhile, Fantom and Avalanche have had nearly little growth in total value locked, with only a 0.53% and 0.91% increase in TVL, respectively. The Solana network experienced a large outage on February 25th, lasting 18 hours and 50 minutes. This was the network’s longest outage since January 2022, when it had several days of reduced performance.
Although the inquiry is still underway, it has been found that the February outage was caused by a core network update. Solana’s founder, Anatoly Yakovenko, has said that one-third of the core engineers will devote their efforts to improving network reliability throughout 2023. This endeavor will be backed up by a six-point approach targeted at improving the network update process and preventing similar outages in the future.
According to CryptoGlobe, institutional investors have dumped cryptocurrency investment products that provide exposure to top digital assets such as Bitcoin ($BTC) and Ethereum ($ETH) in the last week, but have notably increased bets on products that provide exposure to altcoins such as $XRP, Solana ($SOL), Litecoin ($LTC), and Polygon ($MATIC).
As the price of Bitcoin has been rising dramatically, institutional investors have been selling BTC-related instruments, with outflows totaling $113 million in the last week. The price increase has resulted in a 32% increase in total assets under management for these products over the last week.
Similarly, Ethereum goods witnessed outflows of $13 million last week. Other cryptocurrencies, on the other hand, defied the trend, receiving a total of $1.3 million in inflows. $400,000 inflows were seen in $XRP products, whereas $200,000 inflows were seen in SOL, MATIC, and LTC products.