The total daily transaction fees paid on the Solana blockchain have dropped to a level not seen since early May 2024. On Monday, Solana's daily transaction fees fell to
$639,000, marking a
65% decrease from this month's peak of
$1.83 million on August 8 and an
87% decline from the all-time high of
$5.08 million recorded on March 18.
Declining Activity and Memecoin Market Impact
The significant drop in daily transaction fees suggests reduced activity on the Solana network, with memecoin trading being particularly affected.
Ruslan Lienkha, Chief of Markets at YouHodler, noted that the lower transaction fees are linked to the cooling hype around memecoins.
According to Coingecko data, the market capitalization of Solana memecoins now stands at
$7.42 billion, reflecting a
2.6% decrease in the past 24 hours. The top five memecoins by market cap on the Solana network have all decreased in value over the past month, with declines ranging from
14% to 34%.
Decrease in Total Value Locked on Decentralized Exchanges
In addition to the decline in transaction fees, there has been a notable decrease in the total value locked (TVL) on some Solana-based decentralized exchanges that facilitate a significant amount of memecoin trading. Data from DefiLlama shows that TVL on
Raydium has decreased by nearly
20% over the past 30 days, while
BonkSwap has seen a drop of more than
23% in the same period. The Block's GMCI Meme Index also reflects this trend, showing a drop of over
17% in the past month, indicating a broader decline in the memecoin market.
Final Phase of Memecoin Hype?
Lienkha described Solana as having gained recognition as a key chain for memecoin projects, suggesting that the current fall in user activity could indicate the final phase of the memecoin hype in the current crypto market. Despite the declining activity, Solana's price increased by
2.9% over the last day, trading at
$161.14 with a market cap of approximately
$75 billion, reflecting a
14% decline over the past month.
Read more at
The Block.
