Solana DeFi hits $10 billion in TVL – How and why?

• Solana hits $10 billion in TVL, driven by protocol advancements and stablecoin liquidity
• DeFi ecosystem saw rapid growth as Solana’s technology attracts retail and institutional investors

Solana’s DeFi ecosystem is making headlines once again, crossing the $10 billion mark in TVL for the first time in three years. This milestone highlights Solana’s recovery from FTX’s collapse and a resurgence of confidence in its ecosystem.

With innovative technology, growing protocol adoption, and rising liquidity, Solana is reclaiming its place in DeFi. The key question is this – What factors are driving this growth, and how high can Solana’s TVL go as the crypto market turns bullish in 2025?

Key protocols like Solend have contributed to the growth by offering efficient lending and borrowing with low fees, while Marinade Finance’s competitive staking rewards have incentivized SOL token holders, enhancing network decentralization. Platforms like Raydium have also played a pivotal role by integrating with Orderly Network to launch Solana’s first perpetual Futures trading, driving greater liquidity and trading volumes.

Source: X

Solana’s TVL surge has also been supported by significant stablecoin liquidity. In December 2024, the network onboarded $1 billion in stablecoins, pushing the total to around $5 billion. This was further bolstered in January 2025, with Circle minting $1.25 billion in USDC on Solana. These liquidity inflows have facilitated key DeFi activities like trading, lending, and yield farming.

Ecosystem upgrades like Solayer, low fees, and high speeds, have also attracted both retail and institutional investors. In light of positive market sentiment and a possible U.S Spot Solana ETF, Solana’s DeFi ecosystem may be set for sustained growth and renewed investor confidence.

Realistic or not, here’s SOL’s market cap in BTC’s terms

Solana – 2025’s outlook

Source: TradingView

Solana’s latest price rally reflected strong market optimism, with SOL surging by nearly 10% in a single day.

The RSI approaching overbought levels suggested growing investor confidence, but also raised concerns about potential corrections. Additionally, the rising OBV highlighted increasing buying pressure, which could further fuel TVL growth. If Solana keeps its current momentum, surpassing $15 billion in TVL seems likely, with a potential $20 billion target if institutional inflows and stablecoin liquidity rise.

However, overheating indicators and market volatility pose risks. It’s crucial to monitor network stability and regulatory developments for sustainability.