{"id":9593,"date":"2025-03-11T08:08:31","date_gmt":"2025-03-11T07:08:31","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=9593"},"modified":"2025-03-11T08:08:31","modified_gmt":"2025-03-11T07:08:31","slug":"solanas-revenue-takes-a-hit-a-93-decline-following-the-memecoin-craze-collapse","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/11\/solanas-revenue-takes-a-hit-a-93-decline-following-the-memecoin-craze-collapse\/","title":{"rendered":"Solana’s Revenue Takes a Hit: A 93% Decline Following the Memecoin Craze Collapse"},"content":{"rendered":"

<\/p>\n

\n

The revenue generated by the Solana network and the total value locked on the blockchain have plummeted over the last two months as enthusiasm for memecoins has continued to decrease.\u00a0<\/p>\n

The weekly revenue on the Solana blockchain soared to an unprecedented $55.3 million in mid-January during the peak of the memecoin minting hype.\u00a0<\/p>\n

Nevertheless, this revenue has since fallen by 93%, dropping to approximately $4 million in the past week, returning to figures not observed since September, according<\/a> to data from DefiLlama.\u00a0<\/p>\n

The revenue from decentralized applications (DApps) on Solana has also decreased by roughly 86%, from $238 million in mid-January to $32 million this past week.\u00a0<\/p>\n

In addition, the total value locked in DeFi on Solana has nearly halved during the same timeframe, declining from a January peak of just above $12 billion to current estimates around $6.4 billion.\u00a0<\/p>\n

\n

Weekly revenue and TVL for Solana. Source: <\/em>DefiLlama<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Trading of memecoins, predominantly on the Pump.fun platform, constitutes approximately 80% of the revenues from the Solana blockchain, as per<\/a> a report by VanEck dated March 5.\u00a0<\/p>\n

Pump.fun saw daily revenue<\/a> peak at $15 million in late January, but has since fallen by about 95% to $800,000 on March 7, according<\/a> to analytics from Dune.\u00a0<\/p>\n

The memecoin craze reached its zenith when Donald Trump introduced his eponymous token (TRUMP) on January 18, followed shortly by his spouse, Melania, who launched MELANIA on January 20.<\/p>\n

\u201cThe introduction of TRUMP and MELANIA signified the pinnacle for memecoins, as it drained liquidity and focus from all other cryptocurrencies,\u201d stated<\/a> Bobby Ong, founder of CoinGecko, on March 6.\u00a0<\/p>\n

Both tokens experienced a surge post-launch but plummeted in the days that followed. TRUMP is currently down 86% from its peak, trading at $10.50, while MELANIA has fallen 95% in merely seven weeks to $0.71.<\/p>\n

Related: <\/strong><\/em>Solana down 45% since Trump token launch as memecoins divert liquidity<\/strong><\/em><\/a><\/p>\n

The market capitalization of memecoins reached a zenith of $137 billion in December but has since fallen by 68% to $44 billion, as per<\/a> CoinMarketCap data.\u00a0<\/p>\n

\n

Collapse of memecoin market cap. Source: <\/em>CoinMarketCap<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Prices of Solana (SOL<\/a>) have also faced a significant hit over recent weeks, resulting in a 58% decrease from their mid-January peak of $293. The asset was down an additional 5% for the day, trading at $122 at the time of this writing.\u00a0<\/p>\n

Magazine: <\/strong><\/em>Bitcoin\u2019s odds of June highs, SOL\u2019s $485M outflows, and more: Hodler\u2019s Digest<\/strong><\/em><\/a><\/p>\n