- Solana’s recent downtime raised doubts, but its resilient ecosystem surpassed TVL records.
- Despite sentiment decline, SOL’s price grew.
The recent downtime on the Solana [SOL] network raised concerns among skeptics regarding the network’s future and its ecosystem.
Solana marches on
However, amidst these doubts, the Solana ecosystem displayed resilience and appeared to be thriving. Recent data indicated that Solana surpassed its previous total value locked (TVL) record from the 1st of January.
As of the latest update, the TVL, measured in both USD and SOL, reached its peak since November 2022, signaling a robust performance despite the recent challenges.
Solana has now surpassed its local top in TVL from January 1st.
TVL both in terms of USD and SOL is at its highest point since November 2022. pic.twitter.com/EZQ19xEfkn
— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) February 9, 2024
This increase in TVL not only reflects positively on the network’s financial strength but also positions Solana for further development and expansion.
Looking at the socials
Despite the growth in TVL, the overall sentiment around Solana continued to decline. This suggested that on the social front, there was still negative chatter around the network.
This negative sentiment can have detrimental effects on Solana’s prospects. It may prompt investors to approach the platform with caution, potentially resulting in decreased investment inflow and the withdrawal of existing funds.
Furthermore, the erosion of trust among users due to negative chatter could deter new users from joining the ecosystem and lead existing users to reconsider their involvement.
Additionally, a weakened community support system and potential reluctance among developers to build on the platform could impede Solana’s ability to foster a vibrant ecosystem.
Source: Santiment
This decline in sentiment impacted NFT sales on Solana as well. This was showcased by the Solana blue-chip collections seeing a massive decline over the last month.
Additionally, the floor value of these NFTs also fell during this period. The decline in interest in NFTs could further impact the network negatively which can have adverse effects on SOL’s price as well.
Source: Solana Floor
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Despite this, the price of SOL grew. At press time, SOL was trading at $104.64 and its price had grown by 2.79% in the last 24 hours.
However, the volume at which it was trading had declined from 3.91 billion to 1.91 billion.
Source: Santiment