Solana Sees Revenue Plummet Over 90% as Memecoin Trading Frenzy Disappears – CryptoMode
The Solana (SOL) network, once a vibrant hub of memecoin activity, has experienced a dramatic reversal in recent months, with network revenue and total value locked (TVL) plummeting as the speculative fervor surrounding these risky assets wanes.
A mid-January surge, fueled by a frenzy of memecoin creation and trading, saw Solana’s weekly network revenue reach an unprecedented $55.3 million. However, data from DefiLlama reveals a stark decline, with revenue collapsing by 93% to approximately $4 million in the past week, levels not seen since September, before the recent crypto market rally.
Similarly, revenue from decentralized applications on Solana has plunged by roughly 86%, from $238 million in mid-January to $32 million in the latest week. The decline also saw the total value locked in Solana’s DeFi ecosystem plunge from over $12 billion earlier this year to $6.5 billion.
Memecoin Slowdown Hits Solana’s Bottom Line
The memecoin market, which VanEck has estimated accounts for roughly 80% of Solana’s revenue, has seen a massive decline after peaking earlier this year with the launch of Donald Trump’s “official” memecoin TRUMP.
Daily revenue on Pump.fun, the leading Solana token launchpad, peaked at $15 million in late January but has since fallen by approximately 95% to $800,000 as of March 7, according to Dune Analytics data.
Most memecoins launched during the frenzy have since seen their value collapse, including TRUMP’s token, down more than 37% over the past month to now trade at little over $10.5. Even Trump’s highly anticipated White House Crypto Summit failed to assuage the market.
