Solana revenue drops 93% as memecoin bubble bursts

Solana's (CRYPTO:SOL) network revenue and total value locked (TVL) have plummeted sharply following the collapse of the memecoin trading frenzy that peaked earlier this year.

Weekly revenue on the Solana blockchain fell from a record $55.3 million in mid-January to just $4 million last week, marking a 93% decline, according to DeFiLlama data.

The memecoin craze, driven by platforms like Pump.fun, accounted for approximately 80% of Solana's revenues during its peak.

However, daily revenue from Pump.fun has dropped 95%, from $15 million in January to $800,000 as of March 7, according to Dune Analytics.

The launch of tokens such as TRUMP (CRYPTO:TRUMP) and MELANIA (CRYPTO:MELANIA) in January initially fueled the frenzy but also marked its peak.

Both tokens have since seen significant losses, with TRUMP down 86% from its high and MELANIA collapsing by 95%.

The downturn has also affected Solana's decentralised application (DApp) ecosystem.

Weekly DApp revenue fell by 86%, from $238 million in January to $32 million last week.

Meanwhile, Solana's DeFi TVL has nearly halved, dropping from over $12 billion in January to around $6.4 billion currently.

Bobby Ong, co-founder of CoinGecko, noted that the memecoin boom diverted liquidity and attention away from other cryptocurrencies.

"The launch of TRUMP and MELANIA marked the top for memecoins," he stated.

The broader memecoin market has similarly suffered, with its total market cap declining by 68%, from a peak of $137 billion in December to $44 billion today, according to CoinMarketCap.

Solana's native token (SOL) has not been spared from the fallout.

SOL prices have dropped 58% from their January all-time high of $293.

At the time of reporting, the Solana (SOL) price was $123.40.