Solana Network’s Revenue Falls from $55M to $4M – What’s Behind This Unprecedented 93% Drop?

Solana’s network revenue surged to a record high in January but declined sharply in recent months. Various metrics, including decentralized application revenue and total value locked in DeFi, also fell. This decline suggests a broader loss of momentum in the ecosystem. The waning interest in memecoins likely contributed to this trend. However, upcoming network upgrades could boost investor confidence and drive a potential recovery.

$55M to $4M: Shocking Fall in Solana’s Blockchain Earnings

The weekly Solana network’s revenue shows it saw its highest-ever record in January, with $55 million. This, however, has been lowered by almost 93% since then, as Solana blockchain’s past week’s revenue plunged to $4 million. Such low numbers have not been recorded since last year’s September. This trend is seen in relation to all of Solana’s revenue statistics. Solana’s decentralized application revenue has also fallen, reaching $32 million in the past week. This marks an 86% decrease, with $238 million in revenue in January. 

Chart 1- Provided by DefiLlama, published in Tradingview, March 11, 2025.

Based on Chart 1, the total value locked (TVL) for Solana is down to $6.4 billion. This is a 50% decrease from more than $12 billion all-time high in January. This overall decline can be attributed to the recent lowering of interest in memecoins over the last two months. This is because, as highlighted in a VanEck report, 80% of Solana’s revenue comes from the Pump.fun memecoins. In the last days of January, the Pump.fun platform’s revenue hit $15 million daily. However, with the fall of memecoin popularity, this number has decreased 95% to $800,000.

From Hype to Collapse: The Rise and Fall of Memecoins

The noticeable jump in Solana network’s revenue in January can be traced to the height of the memecoin frenzy. This was caused by the launch of Donald Trump’s official memecoin TRUMP before his inauguration on January 18. Part of the hype was also attributed to Trump’s wife, Melania, and her memecoin MELANIA launched on January 20. Although these coins were not launched on Solana’s platform, they kickstarted the memecoin hype, increasing Solana and Pump.fun platform’s revenue.

These memecoins experienced substantial growth after they launched, reaching millions in market capitalization. However, they were dumped in a short time, falling in value, with TRUMP now 86% down, trading at $10.45. MELANIA also experienced a disastrous fall, now trading at $0.6876 with a near 95% decrease. As per the whole of the memecoin market, it hit its peak in December of last year. Based on the data from Coinmarketcap, this sector hit $137 billion last year and has now plunged to $44 billion. 

Solana Crashes 58% – New Upgrade Reviving Momentum?

It is no surprise that Solana itself saw a sharp decline as the crypto community lost interest in memecoins. SOL’s value experienced its all-time high in January and has decreased almost 58% since then. Based on Coingecko’s data, Solana’s ATH is $293.31, and as of writing this, it is trading at $124.30. However, an upcoming upgrade for Solana’s network can bring increased interest to the network. Solana Improvement Document (SIMD)-0228 is in discussion and is set to change the SOL tokenomics, enhancing its inflation model.

Beyond Memecoins: Solana’s Long-Term Stability

The upcoming network upgrade may boost confidence by refining tokenomics and improving sustainability. A successful implementation could attract developers and projects, reducing dependence on speculative assets. Additionally, Market cycles show that while memecoins have declined, new trends may emerge to drive demand. Solana must position itself to benefit from these shifts. AS maintaining adaptability and fostering strategic developments will ensure long-term stability.