SOL TVL Just Beat Ethereum’s Decline—What’s Driving This $10.75B Surge?

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  • Long-term SOL holders face “fear” as NUPL metrics show unrealized losses, signaling reduced confidence despite no mass sell-offs.
  • Circle mints $250M USDC on Solana, pushing 2025 total to $10.75B, reinforcing stablecoin liquidity for DeFi and on-chain efficiency.

Solana’s blockchain has expanded its presence in decentralized finance (DeFi), capturing 8.6% of the total value locked (TVL) in March 2025, up from a smaller base a year prior.

This growth contrasts with Ethereum’s declining dominance, which fell to 60.1% from over 80% in previous highs. Solana’s rise in DeFi adoption aligns with its ability to process transactions quickly and at lower costs compared to Ethereum, especially during periods of high network congestion.

Despite these gains, long-term SOL token holders exhibit caution. Glassnode data reveals that the Net Unrealized Profit/Loss (NUPL) metric for Solana dropped to “fear” levels in March, indicating many long-held positions now sit at or below break-even points.

sol-glassnode
Source: Glassnode

The decline in confidence follows a price drop from January peaks, though it does not directly correlate with immediate sell-offs. Reduced buying activity among holders, however, may temper market momentum.

Circle minted an additional $250 million in USDC on the network, pushing its 2025 total to $10.75 billion. USDC underpins DeFi operations and remittances on Solana, with steady issuance reflecting continued institutional and developer engagement.

USDC minting. Source: OnchainLens
Source: OnchainLens

High liquidity from stablecoins supports on-chain transactions, lending, and decentralized applications, potentially easing user concerns about network usability.

DeFi-sector-of-Solana.
Source: CryptoRank

Price trends show signs of recovery. ETHNews analysts note SOL broke free from a downward trend starting in late January, stabilizing near recent lows before rebounding. This shift coincided with broader market stability, though SOL’s peak in January saw heightened activity in meme tokens, which may have contributed to subsequent price pressure.

SOLUSDT_2025-03-25_13-58-29
Source: Tradingview

Solana’s technical strengths and growing DeFi footprint contrast with lingering holder uncertainty. While metrics signal cautious optimism, sustained growth hinges on balancing network adoption with market sentiment.

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