Solana Slumps Amid Memecoin Bubble Burst
11.03.2025 12:39
The Solana blockchain experienced a sharp decline in revenue and on-chain activity with a 93% drop compared to its January peak, largely due to fading memecoin enthusiasm. Solana’s network revenue has fallen from $55.3 million to around $4 million per week and its decentralized application revenue has similarly tumbled. Additionally, total value locked (TVL) on the network has nearly halved, reflecting weakening investor sentiment. Meanwhile, memecoins like TRUMP and MELANIA, which saw a rapid surge in early 2025, have witnessed severe sell-offs, with TRUMP down 86% and MELANIA collapsing 95% from their peaks. Data from sources like DeFillama, Dune Analytics, and insights from industry influencers suggests that the negative market dynamics are not confined to one asset, and the ripple effects could influence overall market sentiment.
Short-term, SOL is likely to face downward pressure due to the sharp slump in network revenue, DApp activity, and TVL. In the long term, if the network regains investor confidence and diversifies its use cases beyond memecoins, there may be stabilization or improvement. Immediate negative liquidity trends and the fading memecoin hype dominate current sentiment, though historical recoveries after market corrections offer a deferred potential upside if broader market conditions improve.
TRUMP token experienced a dramatic pump followed by a severe dump, reflecting extreme volatility typical of memecoins. In the short term, the token may remain depressed given the loss of hype and investor drain. Long-term recovery appears unlikely unless there is renewed, substantial interest driven by high-profile endorsements or an unexpected catalyst that can reverse current liquidity concerns.
MELANIA token saw an even more drastic decline compared to other memecoins, with a 95% drop in a short period. In the near term, the token is expected to continue underperforming due to waning speculative interest and loss of liquidity. The absence of sustainable fundamentals and reliance on short-lived hype make long-term recovery highly unlikely unless a significant market turnaround occurs.
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