The total value locked (TVL) on the Solana blockchain’s decentralized finance (DeFi) space has trended downwards in U.S. dollar terms over the past three months, dropping a total of 45.9% from $3.94 billion to $2.13 billion.
According to CryptoCompare’s latest Asset Report, the dominance of the five largest protocols on the network has nevertheless risen over the same period, hitting a 51.6% peak on August 9. Solana, the report adds, benefits from a “well-diversified set of DeFi applications ranging from DEXes to lending, liquid staking, and yield services.”
CryptoCompare’s report adds that developer activity on the Solana network has kept on increasing this year, with the “total number of GitHub contributors rising by 40.9%, while total commits have risen by 14.8%.”
Meanwhile, the cryptocurrency has seen its volatility steadily decrease since May, reaching a yearly low 30-day volatility of 77.2% on August 27. Per the report, this is the “lowest volatility figure for the cryptocurrency in the last two years, illustrating the lack of activity in markets.”
The firm adds that lower volatility isn’t necessarily a good thing for cryptocurrencies. Solana, for example, has lost over 80% of its value this year and has been underperforming against other major cryptocurrencies including $BTC, $ETH, and $ADA.
As CryptoGlobe reported, the total number of transactions conducted on the Solana network is nearing the 100 million mark, at a time in which institutional investors keep betting on products offering them exposure to the cryptocurrency, despite the ongoing bear market.
Institutional investors have earlier this month largely reduced their bets on both Bitcoin and Ethereum-based investment products, while increasing their exposure to several altcoins, including Solana.
Products offering exposure to Solana saw $500,000 in inflows, while products offering exposure to XRP saw $200,000 in inflows. Cardano-based investment products saw $100,000 in inflows, while multi-asset products saw $3.3 million in inflows.
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