• Total value locked on Cardano and Solana networks on a monthly basis suffered nearly no negative impact. 
  • The SEC classified these assets as securities in its lawsuit against Binance and Coinbase, with no major impact on their value. 
  • An expert at crypto investment firm Arca said that the SEC’s classification of tokens as securities has no significant impact on DeFi market participants. 

The US Securities and Exchange Commission (SEC) classified several tokens as securities in its recent lawsuits against leading crypto exchange platforms Binance and Coinbase. Tokens such as Cardano and Solana are in the list but their Total Value Locked (TVL) on decentralized finance applications hasn’t observed a downturn, a sign of resilience despite falling prices.

Also read: Two key dates over the SEC request to freeze Binance assets

Why DeFi TVL matters 

TVL is a metric used to measure the total value of all assets locked or staked in a DeFi protocol or platform. The higher a protocol’s TVL, the more trustworthy it is considered in the DeFi community. Moreover, an elevated TVL is indicative of higher utility and  adoption among users. 

The TVL of Cardano, Solana and BNB Chain networks declined around 1% on a monthly basis despite the recent classification of these tokens as securities by the US financial regulator, according to data from DeFiLlama.

Of all the tokens that were marked as securities in the US financial regulator’s lawsuit against Binance and Coinbase, these three saw no significant impact on their TVL. 

Kyle Doane, trader at crypto investment firm Arca, told Coindesk in an email that the current crypto winter is a prolonged one, so the current market participants in the DeFi ecosystem are unfazed by the latest actions from the SEC. 

The tokens themselves being deemed securities have nothing to do with the viability of the underlying tech of DeFi and does not make the tokens/dApps any more or less valuable.

 Doane said. 

Cardano and Solana TVL remains largely unaffected on monthly basis

Cardano network’s TVL declined 6.41% overnight, but there is no negative impact on the total value of digital assets locked in the protocol. Based on the below chart from DeFiLlama, the protocol’s TVL (without staking and vesting) at the time of writing is $147.9 million, as of May 8 it was $163.39 million. This marks an increase of 10.49% on a monthly basis.

On June 5, before the SEC announced its lawsuits against Binance and Coinbase, the TVL stood at $183.06 million.

Cardano TVL without including staking and vesting

Cardano TVL without including staking and vesting

For Solana, TVL declined to $557.59 million on June 8 from $568.33 million a month earlier, or 1.9%. Despite the SEC’s label for Cardano and Solana, their TVL suggests that these assets remain resilient signaling a potential price recovery in the short term.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP