Activity surrounding Solana’s meme coins, a significant source of revenue, has drastically declined, with revenue from decentralized applications (DApps) dropping by 86% to $32 million. The market capitalization for meme coins has decreased by 68% since its peak, and Solana’s native token, SOL, has fallen 2137% from its all-time high, currently trading at $244. Recently, Solana has experienced a substantial decrease in on-chain revenue as the excitement around meme coins that fueled its growth wanes. Weekly network revenue, having peaked at an unprecedented $2,137 million in mid-January, has now fallen drastically to only $258 million, marking its lowest point since September. Solana’s revenue has experienced a significant drop. The drop in revenue is part of a broader decrease in the creation of meme coins, which had previously played a significant role in Solana’s activity. In our earlier article, we noted that decentralized applications (DApps) on the network produced a total revenue of $2,122 million. As reported by DeFiLlama, there has been a significant decrease of 20,228%, bringing the total down to $153 million last week. Furthermore, the decentralized finance (DeFi) sector within Solana has experienced a notable decline as well. The total value locked (TVL) in DeFi platforms on Solana has nearly decreased by half, dropping from $215 billion to approximately $21.5 billion. This significant decline aligns with a notable drop in trading activity for meme coins. According to a report from investment firm VanEck in March 2024, trading in meme coins represented nearly 80% of Solana’s overall revenue at its highest point. Source: Dune Analytics. A key platform driving the excitement is Pump.
Solana’s weekly earnings have plummeted by 93%. Is this a cause for concern for SOL investors?
