Solana revenue slumps 93% from January high after memecoin bubble bursts

Solana community income and whole worth locked onchain have collapsed previously two months as curiosity in memecoins has continued to taper off. 

Weekly community income on the Solana blockchain hit a report excessive of $55.3 million in mid-January amid the peak of the memecoin minting frenzy. 

Nevertheless, income has since tanked 93% to round $4 million previously week, again to ranges not seen since September, in line with DefiLlama information. 

Solana weekly decentralized utility (DApp) income has additionally slumped round 86% from $238 million in mid-January to $32 million for the previous week.  

In the meantime, DeFi whole worth locked on Solana has additionally declined by nearly 50% over the identical interval, falling from a January excessive of simply over $12 billion to present ranges of round $6.4 billion. 

Memecoin buying and selling, totally on the Pump.enjoyable platform includes roughly 80% of the Solana blockchain’s revenues, in line with a March 5 report by VanEck. 

Pump.enjoyable day by day income hit a peak of $15 million in late January however has since slumped by round 95% to $800,000 on March 7, in line with information from Dune Analytics. 

Memecoin mania peaked when Donald Trump launched his personal namesake token (TRUMP) on Jan. 18, shortly adopted by his spouse, Melania, who launched MELANIA on Jan. 20.

“The launch of TRUMP and MELANIA marked the highest for memecoins because it sucked liquidity and a spotlight out of all the opposite cryptocurrencies,” stated CoinGecko founder Bobby Ong on March 6. 

Each tokens surged following their launches however dumped within the days that adopted. TRUMP is presently down 86% from its peak, buying and selling at $10.50, whereas MELANIA has collapsed 95% in simply seven weeks to $0.71.

Associated: Solana down 45% since Trump token launch as memecoins divert liquidity

Memecoin market cap hit a peak of $137 billion in December however has since tanked 68% to $44 billion, in line with CoinMarketCap. 

Solana (SOL) costs have additionally taken a battering over the previous few weeks, leading to a 58% fall from their mid-January all-time excessive of $293. The asset was down an additional 5% on the day, buying and selling at $122 on the time of writing. 

Journal: Bitcoin’s odds of June highs, SOL’s $485M outflows, and extra: Hodler’s Digest