Solana's DeFi ecosystem has experienced a significant decline, with TVL dropping by 12% in December, resulting in a loss of over $1 billion. This decrease is due to a notable decrease in user engagement, as evidenced by a drop in daily active addresses on the network.
The bearish momentum surrounding SOL raises concerns about potential further losses, posing challenges for Solana's DeFi landscape, which was once seen as promising but now faces uncertainty about its future viability.