Solana (SOL) made a remarkable comeback after falling into single digits in December 2022. Solana’s price is up 112% in the past 30 days and is trading at $25, at the time of writing. However, the SOL network has been hit with other bad news during the recovery.
Solana TVL to take a hit?
Everlend Finance, a DeFi lending protocol mode on the Solana blockchain, announced a complete shutdown. The closure is being initiated due to a liquidity crisis.
Meanwhile, with constant withdrawals from the Solana network, the total value locked (TVL) of SOL has fallen nearly 6% over the past 7 days to $270 million. However, the SOL price has managed to recover from the heavy dump in December.
In a Twitter thread, Everlend stated that it was a very difficult decision for the team. However, they tried to avoid this situation by trying and exploring other options over the past month. It added that Everlend is one of the excellent products that will become very useful one day. Will the price of Solana fall further Read here…
Everlend died due to liquidity crisis
The lending protocol revealed that there is simply no liquidity and this is not just about the Solana. The borrowing and lending market is shrinking and pushing these terms is like a gamble.
However, Everlend stated that the codebase will be open-source. This would help others use what their team builds.
According to the details, all deposits from the underlying protocols have been shifted to Everlend vaults. Users are advised to withdraw their funds as soon as possible. Their app is now set to recording-only mode. All funds raised and unused, including payments made to third parties, will be covered within the next 2 weeks, it added.
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