June 29, 2022

Solana Lost $6+ Billion in TVL to Lowest Point This Year

Solana’s Total Value Locked (TVL) has continued to fall in the second half of the month due to continued bearish movements in the digital assets’ trading floor. The bearish trends have reportedly dampened investor interest in the blockchain tech industry.

Solana sits among the best digital over the last one-and-a-half years. Research showed that the digital asset lost up to three-fifth of its total value locked at the beginning of the yea

Solana’s Total Volume Locked at the beginning of the year was about $11.2B. However, the asset’s TVL fell to about $4.4B yesterday. 

Solana is a blockchain tech-powered decentralized finance (Defi) system that permits the structuring of user-friendly software. This blockchain tech-powered software allows for escalation.

Moreover, the digital asset is one of the most rapidly expanding projects in the digital assets world. Solana has launched thousands of digital projects within the contexts of non-fungible tokens, Web3, and decentralized finance.

 The Reason for the Decline

The crash of decentralized applications in the Solana system was reportedly one of the reasons for the dip in SOL’s total volume locked over the week. Moreover, decentralized credit facility-providing company Solend reportedly fell by over 8% in April. 

Tulip, another decentralized application, lost over 11% of its total volume locked over the last month. Marinade Finance and Serum saw dips in their TVL by over two-fifth of the initial value when April began.

Several other decentralized applications reportedly led to the dip in the total volume locked of SOL altogether, summing up to a plunge in the digital asset’s total volume locked by over $6B.

Despite the crash, Solana remains the fourth blockchain by total value locked. Moreover, Meta announced the digital asset’s non-fungible token is part of the digital collectibles it would include in its Instagram non-fungible token project. 

Square Enix to Branch into Web3 Gaming

Square Enix, a gaming company, announces that it intends to offer non-fungible tokens and divest its assets into games on the Web3 platform. The Japanese games manufacturer announced its intentions while declaring its income in Q1 2022.

In the report, Square Enix said it would make some of its gaming products include more non-fungible tokens this year. According to their most recent financial statement, Square Enix currently manages up to $3B worth of assets.

Additionally, Square Enix says it intends to set up regulations to guide its production of blockchain gaming software. It also says it would set up a branch of its services on foreign soil to help manage and supervise its NFT projects.

The company mentioned financing and investing in blockchain, cloud-based technologies, and artificial intelligence as the number 3 spot on its priority list of ideas in its latest strategy.

Web3 gaming software has kept expanding its popularity throughout the year, regardless of the widespread negative tide of events in the crypto industry.