Solana’s Revenue Stream Diminishes Sharply Experienced 90% Drop from January Peak

The ongoing decline within the memecoin sector is exerting considerable downward pressure, significantly impacting networks like Solana.

Solana’s chain-generated revenue has undergone a substantial contraction, registering a 90% decrease from its high points in January, thus falling back to revenue levels reminiscent of September.

Over the past two weeks, the blockchain network’s earnings have averaged approximately $4 million weekly.

A stark contrast to the $38.5 million average weekly revenue achieved between January 13th and 27th.

This prior period of high earnings directly coincided with a surge in memecoin activity, particularly spurred by tokens such as TRUMP.

This reduction in revenue can be primarily attributed to a marked decrease in transaction fees accrued on the network.

Current data reveals that the chain’s average weekly fee generation for the last two weeks amounts to $8 million, marking the lowest point in weekly fee income since September.

General market instability has also played a role in the sell-off pressure. Bitcoin’s price, for example, has retreated to around $78,000, reflecting a nearly 30% reduction from its previously attained all-time peak of $109,000.

Despite the sharp downturn from peak revenue figures, it is important to note that Solana’s current revenue stream still exceeds levels recorded towards the close of summer in 2024.

During a period from August 19th to September 16th, weekly revenue for the network was consistently below $2 million.

SOL Token Value Also Under Pressure

This revenue downturn has been accompanied by a corresponding decrease in the price of SOL, Solana’s native token.

SOL’s value has diminished by 60%, settling around $117, down from a peak of $295 observed on January 19th.

This price decline is attributable to both the wider cryptocurrency market sell-off and the phased release of previously locked investor tokens, which commenced on March 1st.

Also Read: Solana Price Targets Awaiting Breakout