- Marinade Finances has suspended access for UK users due to compliance issues.
- Marinade Finance’s Solana and TVL have remained unaffected by the recent development.
A large Decentralized Finance (DeFi) platform on the Solana [SOL] network recently restricted access to users from the United Kingdom. This decision raised concerns and questions about its potential implications for SOL and its Total Value Locked (TVL).
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Solana’s Marinade is blocking access to the UK
On October 24, UK users of Marinade Finance were unable to access the Decentralized Finance platform. When attempting to access the platform using a UK IP address, a message was encountered stating that access had been stopped due to compliance issues.
Source: Marinade Finance
However, users were offered alternative links for withdrawing funds and taking back their assets. This recent development was of great importance within the Solana ecosystem. This was because Marinade Finance was the largest contributor to the TVL on the network. Has this development had consequences for the TVL of Solana and Marinade Finance?
Analysis of Solana’s TVL
When examining Solana’s TVL op DeFiLlamait was clear that there had been no adverse impact on the overall trend. This is despite the largest TVL contributor restricting access to some users. Furthermore, at the time of writing, TVL was at almost $370 million and on an upward trajectory.
When assessing Marinade Finance’s TVL, it also seemed to have remained unaffected by recent developments. At the time of this update, TVL was over $265 million, indicating a significant increase of 10% in the last 24 hours. Furthermore, there was an impressive growth of over 90% in TVL last week.
Impact on SOL?
At the time of writing, SOL was trading at around $31, reflecting a decline of just over 1%. This decline followed a notable 9% increase on October 23.
When examining the daily timeframe chart, it became clear that SOL’s current trajectory suggested the potential for a price reversal. This conclusion was supported by the Relative Strength Index (RSI) line, which was above 80.
Source: TradingView
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Moreover, SOL was in a bullish trend and reached the oversold territory, which could be the main reason for the recent price drop rather than any specific developments in the ecosystem. Given these indicators, it is conceivable that further price declines could occur in the coming days as the price tries to correct itself.