Solana’s DeFi Ecosystem Shows Resilience During Market Volatility

Amid a recent market downturn, Solana's decentralized finance (DeFi) ecosystem demonstrated remarkable resilience by handling the majority of liquidations, outperforming centralized exchanges by a significant margin. This highlights Solana's growing capacity for high-value financial activity and its robustness during periods of volatility.

Solana DeFi Dominates Liquidations Amid Market Downturn

Solana's decentralized finance ecosystem handled the majority of liquidations during SOL's recent price decline, outperforming centralized exchanges by 79%. The network processed $37.4 million in on-chain liquidations while centralized platforms saw $20.9 million, demonstrating Solana's capacity for high-value financial activity.

The asset dipped to $182.60 over the weekend, erasing long positions across markets. Liquidations continued into Monday with $29.7 million cleared on centralized venues. Phantom wallet integration and growing perpetual futures interest are driving SOL's derivatives activity toward decentralized protocols.

Open interest for SOL contracts on major exchanges fell 7% as activity migrated to platforms like Drift Protocol, which holds $1.19 billion in TVL. Hyperliquid recorded $1.2 billion in SOL open interest despite it being a secondary market on the platform.

Solana Briefly Surpasses 100,000 TPS in Mainnet Stress Test

Solana's blockchain achieved a significant technical milestone over the weekend, briefly processing over 100,000 transactions per second during a mainnet test. The network recorded a peak of 107,540 TPS late Sunday, according to data from Helius co-founder Mert Mumtaz.

The surge was primarily driven by no-operation program calls—minimal instructions that don't alter blockchain state. While these transactions serve as effective stress tests, they don't reflect typical network activity. Solana's everyday throughput remains at approximately 3,700 TPS, with validator votes comprising much of this volume.

Mumtaz noted that even noop transactions carry computational overhead from signature verifications and data loading. The blockchain's architecture could theoretically sustain 80,000-100,000 TPS for genuine operations like token transfers under optimal conditions, though real-world performance remains substantially lower.

Solana Hits 100K TPS Milestone, Fueling $200 Price Speculation

Solana's network throughput briefly surpassed 100,000 transactions per second over the weekend, marking a technical breakthrough for the blockchain. A stress-tested block processed 43,016 successful transactions at 107,540 TPS, though most were lightweight program calls rather than complex operations.

Helius co-founder Mert Mumtaz contends solana could theoretically handle 80,000-100,000 TPS for sophisticated applications. This scalability positions the network as a prime candidate for institutional adoption, particularly in tokenized equities through platforms like xStocks.

The achievement has reignited bullish sentiment around SOL's price potential, with traders eyeing a retest of $200. However, regulatory clarity through the CLARITY Act remains pivotal for sustained institutional participation.

Solana Price Dip Nearing End? 2 Metrics Hint at a Quick Rebound

Solana's price has dropped sharply by 5.29% in the past 24 hours, falling to $180 amid a broader crypto market correction. However, on-chain metrics suggest a potential reversal. The Coin Days Destroyed (CDD) metric plummeted 86% from 1.16 billion on August 16 to 161.79 million on August 17, signaling that long-term holders are not selling. This pattern mirrors early August conditions that preceded rapid recoveries.

Market sentiment remains weak, but the absence of dormant supply movement indicates accumulation. If CDD stays low, it could confirm bullish momentum. Solana's price action now hinges on whether long-term holders resume profit-taking or hold steady.