Solana is experiencing a sharp decline in key metrics: network revenue and total value locked (TVL) have plummeted over the past two months. In mid-January, at the peak of the meme coin hype, the blockchain’s weekly revenue hit a record $55.3 million. However, since then, it has dropped by 93% to $4 million, reaching levels last seen in September, according to DefiLlama.
A similar trend is evident in decentralized applications (DApps), whose weekly revenue has fallen by 86%, dropping from $238 million in January to $32 million last week.
The decline in platform activity is also reflected in the total value locked (TVL) across DeFi projects on Solana. In January, TVL peaked at $12 billion, but it has since fallen nearly by half to $6.4 billion.
Meme Coins' Impact on Solana
Meme coins were the primary source of Solana’s revenue in recent months. According to VanEck, trading on the Pump.fun platform accounted for up to 80% of the network's earnings.
However, after an initial surge, the platform saw a steep decline in activity: its daily revenue collapsed from $15 million in late January to $800,000 by March 7 — a 95% drop, according to Dune Analytics.
Experts link the peak of the meme coin boom to the launch of Trump-related tokens. On January 18, former U.S. President Donald Trump launched TRUMP on Solana, followed by his wife Melania Trump, who introduced MELANIA on January 20.
"The launch of TRUMP and MELANIA marked the peak of the meme coin hype, draining liquidity and attention from the broader crypto ecosystem," said CoinGecko co-founder Bobby Ong.
Initially, both tokens skyrocketed in value, but they have since crashed. TRUMP is now trading at $10.45, down 86.12% from its all-time high, while MELANIA has plummeted 91.42%, dropping to $0.68 since launch.
Meme Coin Market Crash and Solana's Struggles
The overall meme coin market has lost a significant portion of its valuation. According to CoinMarketCap, total market capitalization peaked at $137 billion in December, but has since fallen 68% to $44 billion.
As meme coin activity declines, Solana is also under pressure. Its native token SOL hit an all-time high of $294 in mid-January, but has since dropped 58% to $124. Over the past 24 hours, SOL has fallen another 3.62%, indicating continued selling pressure.
The Future of Solana
The current decline in revenue and TVL may signal a new phase for Solana, where the blockchain will need to diversify its revenue streams and reduce its dependence on meme coin speculation.
For now, it remains uncertain whether Solana can sustain user interest after such a rapid downturn.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.