- MarginFi, a popular lending platform on Solana, witnessed a huge number of withdrawals.
- Despite the increase in negative sentiment, Solana’s overall condition remained fine.
Solana [SOL] was one of the few networks that have exploded in popularity in recent months. However, one area where Solana faced challenges was the credit sector.
Just with a margin
MarginFi, a lending platform on the Solana blockchain, had a record day of withdrawals. In one day, lenders raised as much as $80 million, signaling a potential loss of confidence.
The massive withdrawal contributed to a drop in MarginFi’s Total Value Locked (TVL), a key metric that reflects the total value of crypto assets deposited on the platform.
This may be due to recent leadership changes at MarginFi. Edgar Pavlovsky, the CEO of the company behind crypto lending platform MarginFi, resigned on April 10 when internal conflicts within the prominent Solana DeFi project became public.
In a resignation letter on X, formerly Twitter, Pavlovsky stated that he disagrees with the way things have been done internally or externally. MarginFi’s official account referred to the departure of its co-founder due to internal operational disagreements.
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Despite this, MarginFi assured users that all products remain fully operational and unaffected by the departure, emphasizing the decentralized nature of DeFi protocols where core contributors can leave, and the protocol continues to operate.
MarginFi’s troubles follow weeks of issues with its withdrawal feature and the introduction of a points program that precedes a wave of growth-driven loyalty programs in the Solana DeFi ecosystem.
How is Solana doing?
These factors can have a major impact on sentiment surrounding the Solana ecosystem. At the time of writing, weighted sentiment around Solana had dropped significantly. This indicated that the number of negative reactions surrounding Solana in recent days exceeded the positive ones.
Source: Santiment
Despite these factors, Solana’s total value collected (TVL) remained consistent and did not show too much of a decline.
Source: Artemis
Realistic or not, here is SOL’s market cap in terms of BTC
Together with the TVL, SOL’s price also remained unaffected. In the last 24 hours, the price of SOL has increased by 1.56%. At the time of writing, SOL was trading at $172.24.
Combined with the price increase, SOL’s trading volume also grew by 21.70% during this period.
Source: Santiment