Solana, once popularly known as an ‘Ethereum killer’ – was the talk of the town back in 2021. Since then, it has seen quite a lot of value erosion but the fact cannot be denied. Solana was and still in one of the most efficient and fastest crypto blockchain platforms out there in the market right now. Solana’s blockchain protocol is so efficient that it can process as many as 50,000 transactions per second, and its average cost per transaction is $0.00025. This is incredible, especially when you compare it with the transaction speeds and transaction costs on two of the largest cryptos by market cap, Bitcoin and Ethereum.
Solana also happens to be a smart contract capable blockchain – thus thanks to its popularity – it saw a surge in the number of decentralised applications being built on top of it. Now it has dApps ranging all the way from lending and borrowing to decentralised exchanges (DEXs) and many many more. We’ll cover a few of the top ones by total value locked here in this article.
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TOP SOLANA CRYPTO PROJECTS BY TOTAL VALUE LOCKED (TVL)
|PROJECT NAME||PROJECT BRIEF||NATIVE TOKEN||TYPE/CATEGORY||TVL|
|SOLEND||Solend is popular algorithmic, decentralized protocol for lending and borrowing on the Solana blockchain network that lets you earn interest on deposits and borrow assets.||SLND||LENDING||$226.3 MILLION|
|RAYDIUM||Raydium is an automated market market (AMM) built on the Solana blockchain and works as a liquidity provider for Solana based decentralised exchanges.||RAY||AUTOMATED MARKET MAKER||$115.7 MILLION|
|TULIP PROTOCOL||Tulip protocol is Solana’s first yield aggregation platform built with auto-compounding vault strategies. This decentralised application (dApp) is designed to take advantage of Solana’s low cost and highly efficient blockchain platform – and this allows the vault strategies to compound frequently.||TULIP||YIELD||$77.5 MILLION|
|ORCA||ORCA||DECENTRALISED EXCHANGE||$72.9 MILLION|
|SERUM||Serum is a popular decentralised exchange running on the Solana platform. It gained in relevance because of its revolutionary DEX ecosystem with unmatched speed and cheap transaction fees.||SRM||DECENTRALISED EXCHANGE||$71.3 MILLION|
Solend is popular algorithmic, decentralized protocol for lending and borrowing on the Solana blockchain network that lets you earn interest on deposits and borrow assets. Its special feature is that it uses uses an algorithmic protocol to determine interest rates and collateral amounts levied on borrowers against loans.
It was first launched back in August 2021 and gained in popularity back in 2021 alongside Solana, which saw its own market cap skyrocket thanks to its extremely high speed transactions and low fees. So adding a lending protocol to such a fast platform piqued a lot of interest in the crypto world. It also become popular due to another reason – alongside providing simple loaning feature – it is also promising for investors since its architecture allows investors holding SOL tokens to earn very appealing APYs.
Read more: Solana Price Prediction
Raydium is an automated market market (AMM) built on the Solana blockchain and works as a liquidity provider for Solana based decentralised exchange (DEX) called Serum. It is quite unique when compared to other AMMs as Raydium offers on-chain liquidity to a centralised limit order book. That means that the money that enters Raydium is transformed into limit orders placed on Serum’s platform. Thus, as a result, Raydium’s liquidity pools have access to Serum’s order flow and current liquidity.
Raydium’s native token is RAY which serves as utility token for staking and also for governance votes on protocol decisions, which offers investors a good incentive.
Tulip protocol is Solana’s first yield aggregation platform built with auto-compounding vault strategies. This decentralised application (dApp) is designed to take advantage of Solana’s low cost and highly efficient blockchain platform – and this allows the vault strategies to compound frequently. Thanks to this feature, stakers stand to gain higher APYs without requiring active management.
TULIP, the native token on the Tulip protocol platform is slated to transition into a governance token, allowing token holders to vote on critical areas such as protocol enhancements, treasury allocations, platform fees and more. It is a packed dApp that contains services such as lending, yield farming and higher APYs thanks to the vault structure mentioned above.
Orca is a decentralised exchange (DEX) and an automated market maker (AMM) protocol built on Solana with primary focus on capital efficiency and human-centered design language. Thanks to this focus on design, the user experience and user interface of the Orca protocol stands out very much from other DEXs that require users to have a more technical backgrounds to even use. This allows easy onboarding of new users onto the platform and introducing them to this DeFi app.
Along with that, due to the fact that it is built on Solana, it is able to provide ultra low-cost and near-instant trades. As an added benefit for users of Orca, traders can deposit concentrated liquidity and earn a percentage of the trading fees in return for adding the liquidity to the platform. Launched back in February 2021, Orca is one of the earliest Solana based DEXs and automated market maker (AMM) platforms to be built.
Serum is another popular decentralised exchange running on the Solana platform. It gained in relevance because of its revolutionary DEX ecosystem with unmatched speed and cheap transaction fees. As mentioned earlier, it taken automated market making services from Raydium and thus its matching engine and completely on-chain central limit based order book form the foundation of Serum’s DEX.
Serum’s decentralised exchange came at a time when users and developers were looking for another platform to build on since Ethereum, the largest smart contract capable blockchain network – had exorbitantly high transaction fees and sluggish transaction speeds. Solana based Serum attempts to solve those well-known DeFi problems such as centralisation, inadequate capital reliability and liquidity segmentation. Thanks to all of this, Serum is one of the biggest DEXs on the Solana network.
SO, HOW CAN YOU INVEST IN THESE PROJECTS?
Today investing in these Ethereum based project tokens is extremely simple with the CoinDCX App! Just download the CoinDCX crypto investing app, enter the details required and wait for your profile to get verified. Once done, fund your wallet and buy any of the coin of your choice.
Values as on 21 October, 2022.