Solana revenue falls 93% after memecoin market crash
The Solana blockchain has seen a dramatic collapse in on-chain revenue and total value locked (TVL) over the past two months as interest in memecoins tapers off.
In mid-January, Solana’s weekly network revenue peaked at a record $55.3 million during a frenzied period of memecoin minting, reports Cointelegraph.
However, recent data from DeFillama shows that revenue has since plummeted 93% to around $4 million in the past week—levels last seen in September. Likewise, Solana’s weekly decentralized application (DApp) revenue has slumped approximately 86%, dropping from $238 million in mid-January to $32 million for the past week.
Falling TVL and Slumping Memecoin Trading
The decline in network activity is mirrored by a significant drop in Solana’s DeFi total value locked, which has fallen by nearly 50% from a January high of just over $12 billion to roughly $6.4 billion at present. Memecoin trading, largely driven by activity on the Pump.fun platform, once accounted for roughly 80% of Solana’s revenue.
Data from Dune Analytics reveals that Pump.fun’s daily revenue, which peaked at $15 million in late January, has now crashed by about 95% to $800,000 as of March 7. This downturn comes on the heels of memecoin mania spurred by high-profile launches, including Donald Trump’s TRUMP token on January 18 and Melania Trump’s MELANIA token on January 20.
Market Impact and Investor Sentiment
The rapid surge and subsequent dump in memecoin values have had a pronounced effect on overall market sentiment. According to CoinGecko data, the memecoin market cap, which reached a peak of $137 billion in December, has since fallen 68% to $44 billion.
Individual tokens have not fared much better—TRUMP is down 86% from its peak, now trading at $10.50, while MELANIA has collapsed 95% in just seven weeks to $0.71. Solana’s native token (SOL) has also suffered, plummeting 58% from its mid-January all-time high of $293 to around $122.93, with the price further dipping by 5% on the day to approximately $122.
Recently we wrote, that Pump.fun, once a trailblazer in launching meme tokens on Solana, is now experiencing a dramatic downturn as its revenues and user activity decline sharply.
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