Solana is a decentralized blockchain that is highly functional and provides decentralized solutions using a blockchain's permissionless nature while being open source.
Solana has been one of the most proclaimed projects since the beginning of 2021, but it has lost more than 60% of its value since 2022.
On January 1, Solana approximately had $11.22 billion, according to the data provided by Defi Lama, but currently, the total value locked (TVL) of Solana stays at $4.32 Billion on May 16th.
Solana plunging to new lows is mainly because of the decrease in developer activity in its ecosystem. This is directly related to the plunge in the decentralized applications or Dapps in the Solana ecosystem.
Talking about the Dapps, Solend, which is a decentralized borrowing and lending platform has sunk by more than 8% in the last month while Tulip – a yield aggregation platform on Solana has tanked by 11% of its Total Value Locked within the same time frame.
Similarly, the famous staking platform Marinade Finance and decentralized exchange protocol (DEX) Serum, have also fallen by 48% and 42%, respectively, of their share in the total value locked.
Other Dapps that fall under the Solana ecosystem and have also had their share in the total value drop are Raydium, Atrix, Orca, Quarry, Francium, Saber, and Mango Markets.
Solana currently has a market capitalization of about $18 billion, and despite falling by $6 billion short of its market cap, it is still running strong in the Top 10 cryptocurrency rankings.
Solana still holds the lion's share in value locked over TRON, Polygon, Fantom, Cronos, Waves, Near, DefiChain, Osmosis, Harmony, and Cardano.
Solana started the year strong with an open price of $170.01 and made this year's all-time high on January 2 at $179.43. It is currently at $53.89 at writing, making it a roughly 70% fall down from the market value.