Solana Revenue Crashes 90% From January Highs

The memecoin market continues to bleed out, and it's taking Solana with it.

Solana’s chain revenue is down 90% from its January highs, back at levels not seen since September. The chain earned an average of $4 million per week over the last two weeks, compared to $38.5 million per week between Jan. 13 and Jan. 27, coinciding with the memecoin mania catalyzed by the TRUMP memecoin.

The revenue falloff comes from a decline in fees accrued. The chain is earning an average of $8 million in fees over the last two weeks, the lowest weekly fee generation period since September.

The decline in memecoins is a result of the fallout of multi-billion dollar pump and dump memecoins such as TRUMP, and outright scams like LIBRA, MELANIA, and ENRON. While these tokens initially acted as a liquidity vacuum and drove traders to sell previous holdings, the aftermath of these tokens has resulted in a total lack of confidence in the memecoin market.

The general market’s volatility has also contributed to the selloff, as BTC is down to $78,000, nearly 30% from its all-time high of $109,000.

Despite the drastic fall from the highs, Solana’s revenue is still higher than it was towards the tail-end of summer 2024, where the chain earned less than $2 million per week between Aug. 19 and Sep. 16.

SOL is Also Down

The dropoff has come alongside a decline in the SOL price as well, which is down 60% to $117 from an all-time high of $295 on Jan. 19, propelled by the crypto market’s selloff and a series of investor token unlocks, which began on March 1.

Memecoins on Solana have performed even worse, with previous market leaders such as FARTCOIN, GOAT, and ARC all down between 85% and 95% of their all-time highs in Q4 2024.

0xBreadGuy, a contributor to MegaEth took to X to speak on the Solana memecoin demise and said, “people were drunk on portfolio screenshots to the point that they ignored the maturation of the extractoor class on SVM-memes, but the illusion is gone after MELANIA/LIBRA, and with it went market appetite for risk….on to the next narrative.”