Solana's TVL Plummets Below $9 Billion, Raising User Confidence Concerns

Solana (SOL), the high-speed blockchain platform, is facing significant volatility in March 2025, with its Total Value Locked (TVL) falling below $9 billion for the first time since November 2024. This decline has raised concerns about user confidence within the Solana ecosystem.
Despite the recent setback, Solana remains one of the most dominant chains in terms of volume, ranking second behind Ethereum in the last seven days. If user confidence returns and an uptrend emerges,
could reclaim values above $200 in March. However, continued selling pressure could also push it below $100.Solana's TVL is currently at $8.5 billion, dropping from its all-time high of $14.2 billion on January 18. TVL measures the total amount of assets locked in a blockchain's decentralized finance (DeFi) protocols, reflecting user confidence and liquidity within the ecosystem. This is a key indicator of network health, as a rising TVL suggests increasing adoption and capital inflows, while a declining TVL indicates reduced user engagement or capital outflows.
This is the first time SOL’s TVL has fallen below $9 billion since November 9, raising concerns about the chain’s future. The decline coincides with growing community skepticism about the sustainability of major players like Pumpfun and Meterora, which are perceived as highly extractive. Additionally, controversies surrounding the launch of meme coin LIBRA have contributed to uncertainty within the ecosystem. If TVL continues to decrease, it could signal declining user confidence, potentially leading to further price corrections for SOL.
Despite the strong price correction SOL has faced in recent weeks, it remains one of the most dominant players in the crypto space. Although its volumes are not as high as they were a few months ago, Solana continues to demonstrate significant user activity and adoption. Among the largest chains, Solana currently holds the second spot in terms of volume over the last seven days, only surpassed by Ethereum but closely followed by BNB, which has been gaining momentum recently.
In the last 30 days, Solana has led in terms of volume, reaching $120 billion compared to $94 billion for BNB and $85 billion for Ethereum. This shows that despite the price correction, Solana remains one of the most used blockchains,

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