Solana's network has faced a significant drop in revenue, declining by 93% due to the downturn in meme coin trading. This has raised concerns about the economic model and stability of the SOL token.
Sharp Decline in Solana's Network Revenue
Solana's revenue fell from $55.3 million in January to $4 million, primarily due to a downturn in meme coin trading. According to DeFiLlama, dApp revenue dropped from $238 million to $32 million. Nonetheless, Solana's DEX volumes remain comparable to Ethereum's ecosystem.
Proposed Network Upgrades and Their Impact
Solana is developing protocol upgrades to strengthen the network. SIMD 096 directs all priority fees to validators to incentivize network maintenance. Proposed SIMD 0123 aims to distribute priority fees among stakers, sparking controversy among stakeholders. Another SIMD-0228 suggests changes in the inflation rate to reduce token dilution. According to Anatoly Yakovenko, such changes might enhance network security.
Current Price Situation of Solana
Solana is trading at $125.75, showing a 4.22% gain over the past 24 hours. Analysts are closely monitoring the $125–$110 support range. If prices remain above this range, SOL may recover; however, breaking below $110 could see a fall to the $95–$100 level.
Despite significant challenges such as revenue decline and network changes, Solana continues to hold its ground. However, the future depends on the successful implementation of proposed upgrades and the network's ability to adapt to new economic conditions.
