Solana’s DeFi TVL Hits Historic $2 Billion

Solana’s DeFi TVL has charted a new milestone, surpassing $2 billion, a level not seen in the last 20 months. The new feat is a testament to its resilient DeFi ecosystem, which has bounced back strongly since the 2022 FTX collapse. Since last Dec, the total value locked has doubled, indicating increased user activity and trust in the platform’s DeFi applications [DApps]. The blockchain’s scalability and affordability make it a cheaper and faster alternative to Ethereum.

What’s more interesting is that while constituting less than 3% of total DeFi TVL, Solana generates over 20% of the overall on-chain DEX volume. Along with SOL, Ethereum, Manta, and Arbitrum also recorded notable gains. This uptrend marks the fourth consecutive month of growth for DeFi since it finally broke its downtrend in October 2023.

Market observers have noted that the liquid staking and lending/borrowing sectors led the surge across key protocols, culminating in a robust DeFi week for Solana.

Overall, the total value locked in DeFi markets grew 4.1% in January. Liquid restaking continues to be a dominant trend on Ethereum, with Renzo Protocol, Etherfi, and KelpDAO recording monthly TVL gains of 1518.9%, 414.6%, and 90.5%, respectively.

Amidst the DeFi boom, another hot topic within the Solana dev & user communities lately is the recently launched token extensions. Mark Hanna of Print Protocol underscored the significance of its feature-transfer hook and explained how it can transform Solana DeFi. Utilizing the Transfer Hook Interface, he stated, developers can now create Mint accounts that execute custom instruction logic on every token transfer.

Transfer Hooks: Unexplored Realm of Solana

In the past, after a new token launch, some bots would buy up 20%+ of the supply and slowly dump on the holders. With transfer hooks, developers can limit the number of tokens one account can have as well as limit the number of tokens that can be transferred/purchased in one transaction. “This is just one possible solution out of the limitless possibilities,” he wrote.

Transfer hooks can perform any custom functionality. – Transfer hooks execute custom instructions on every transfer – Transfer hooks are the future of Solana This is still an unexplored realm of Solana. Beyond excited to see what the builders can cook up!