In a striking development within the cryptocurrency sector, Solana’s network revenue has drastically decreased by 93%, shifting from $55 million in January to just $4 million recently. This significant downturn represents Solana’s lowest performance since last September. Revenue drops spanned through decentralized applications, which fell by 86% from $238 million to $32 million, and a diminished total value locked (TVL) in its DeFi ecosystem from over $12 billion to $6.4 billion.
The declining interest in memecoins, particularly in the last two months, has heavily impacted Solana’s financial outcomes, with revenue from such assets dropping markedly. Notably, the memecoin-centric platform Pump.fun saw its daily earnings decrease from $15 million to $800,000.
The revenue boost Solana experienced earlier was partly due to memecoin mania related to figures like Donald Trump and Melania Trump, prompting spikes in network activity. However, as the frenzy waned, significant sell-offs followed, reducing both memecoin and Solana’s cryptocurrency, SOL, values. Currently, SOL is trading at $124.30, a decline from its peak of $293.31.
With an upcoming network upgrade defined by the Solana Improvement Document (SIMD)-0228, which intends to revise SOL tokenomics, there is anticipation for rejuvenated interest in Solana. This strategy aims to reduce dependency on unpredictable memecoin markets and foster a more sustainable economic environment for Solana’s long-term growth.
