- Solana’s decentralized application (Dapp) deposits have fallen by half.
- Solana Ventures teamed up with FTX and Lightspeed Ventures.
So far, the overall market value of cryptocurrencies has plummeted by 21% to $1.78 trillion, a bad start for 2022. The year-to-date decline in Solana’s (SOL) stock price is a staggering 48.5%. More than two-thirds of SOL tokens in circulation are held in Solana’s staking pool, worth $35 billion. Network failures in 2021 and early 2022 have been cited as a factor in the underperformance.
DDoS attacks were blamed for the most recent outage, which occurred on January 7, forcing Solana Lab engineers to upgrade their code and, as a result, deny any further requests of this kind. On the other hand, investors are more worried about the centralization of the Solana validation process. As a minimum, a 12-core 2.8GHz CPU, 256GB RAM, and two 1TB solid-state drives are required to reach 400-millisecond block timings.
Rival-Terra (LUNA) Gains
Decentralized application metrics such as total value locked (TVL) began to decline earlier this month while the network’s total value remained $15 billion. Solana’s decentralized application (Dapp) deposits have fallen by half in the last three months, reaching their lowest level since September 8. According to Fantom’s TVL, which has doubled in the last three months, the company’s TVL presently stands at $9.5 billion. Terra (LUNA), a Dapp scaling solution rival, reported an 87% increase in TVL to $23.2 billion.
A new blockchain gaming unit was unveiled on February 21 by FTX.US, the U.S. arm of the worldwide crypto derivative and spot exchange. On November 5, Solana Ventures teamed up with FTX and Lightspeed Ventures to create a $100 million fund devoted to the industry.
Dapp consumption metrics may be used to see whether the decline in TVL is a cause for worry. The value put in certain Dapps is irrelevant since they do not need a lot of money to run. According to CoinMarketCap, the Solana price today is $88.36 USD with a 24-hour trading volume of $1,271,187,042 USD.