Solana, which swiftly gained popularity at the beginning of the year, faced a sharp decline following the meme coin market crash. The network's revenues fell by 93%, raising questions about its future.
Collapse of the Meme Coin Economy on Solana
The decline began after the end of the speculative boom on the Pump.fun platform, which accounted for 80% of the network's revenues. In January, daily income reached $15 million but fell to $800,000 by March 7. The launch of TRUMP and MELANIA tokens marked the end of the boom, absorbing liquidity and attention. DApp activity also dropped by 86%.
A Blockchain Under Pressure: The Drop in TVL and SOL
Beyond revenues, the total value locked (TVL) significantly contracted from $12 billion in January to $6.4 billion today, indicating a loss of confidence in the ecosystem. Meanwhile, the SOL token’s price fell by 58%, reaching $122.
The Future of Solana: New Challenges and Opportunities
Solana faces the need to diversify its economy and transition from speculative trends to more sustainable solutions in DeFi and Web3. This will be crucial as it competes with blockchains like Ethereum and Avalanche.
The meme coin crisis has prompted Solana to reassess its strategy. The ecosystem's future will depend on its ability to adapt and find new sustainable use cases.
