Solana's $10.9 Billion TVL Surpasses the Entire Ethereum Layer-2 Ecosystem

Solanas $10.9 billion TVL surpassed the entire Ethereum layer-2 ecosystem.

Solana (SOL) has quietly risen in the ranks of the top 5 cryptocurrencies by market capitalization to become the fifth largest, boasting $10.9 billion in total value locked (TVL), surpassing the entire Ethereum layer-2 ecosystem.

Solana’s TVL surpasses competitors

The Solana Network, known for its high throughput and low transaction fees, is also the vice-leader in a key onchain metric. With $10.9 billion in TVL, Solana surpasses the combined TVL of the entire Ethereum layer-2 ecosystem, which includes Base, Arbitrum, and Avalanche. Even BNB Chain, which integrates seamlessly with Binance and Trust Wallet, cannot match Solana’s numbers.

Among the notable 30-day TVL increases for Solana are Raydium DEX, which rose by 78%, Jito liquid staking solution, which went up 41%, and Marinade, which saw a 56% gain.

Over a recent 30-day period, the Ethereum network generated just $24.9 million in base layer fees, while Tron captured $51.9 million and Solana totaled $43.3 million, according to DefiLlama.

As Solana’s DApps revenues and chain fees continue to rise, approaching their highest levels in three months, it bodes well for SOL. With 65% of the SOL supply being actively staked, this dynamic typically supports upward price momentum.

To determine whether traders are becoming more optimistic about SOL’s price outlook, it’s useful to consider leverage demand. A positive funding rate signifies that long positions (buyers) are paying to keep their trades open.

Currently, the SOL perpetual futures funding rate stands at 8%, which falls within the neutral range of 5% to 10% based on the cost of capital. However, with SOL still trading 40% below its all-time high of $295 from January 19, there’s no reason for excessive optimism yet.

Despite the recent decline, SOL has shown resilience, remaining above the $150 level. With activity increasing on the Solana network, it’s reasonable to expect SOL to reach $200, potentially outperforming its competitors.

The exact catalyst for SOL’s price surge remains unclear, but possibilities include the potential approval of a spot Solana exchange-traded fund (ETF) in the US, as well as Solana’s eventual inclusion in a state-level digital asset strategic reserve. Some analysts are also optimistic about traditional asset tokenization on Solana, which could unlock further value for SOL.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.