Solana's Profit Declines 90% Due to Meme Coin Market Collapse

# Solana Blockchain's Revenue Plummets 90% from January Peak The revenue of the Solana (SOL) blockchain has dropped 90% from its January peak, returning to the levels seen in September last year, according to a report by The Defiant on October 11. Over the past two weeks, Solana has generated an average of $4 million in weekly revenue, a significant decline from the $38.5 million per week recorded between January 13 and 27 during the meme coin frenzy. This surge in January was driven by the popularity of the TRUMP meme coin. # Decline Driven by Drop in Fee Income The primary cause of the revenue decline is a sharp reduction in fee income. In the past two weeks, Solana's fee income has averaged $8 million per week, the lowest since September of the previous year. This drop is attributed to the collapse and fraud incidents involving multi-billion dollar pump-and-dump meme coins like TRUMP, LIBRA, MELANIA, and ENRON. Initially, these tokens drew liquidity and spurred trading activity, but subsequently eroded confidence in the meme coin market. # Meme Coin Market Collapse and Bitcoin Downtrend The downturn in the meme coin market coincided with volatility in the broader cryptocurrency market. Bitcoin (BTC) has dropped approximately 30% from its all-time high of $109,000 to $78,000. Despite the revenue decline, Solana's income remains higher than the levels seen in late summer 2024, when it recorded less than $2 million per week between August 19 and September 16. # SOL Price Also Drops Sharply The reduction in Solana's revenue coincides with a steep decline in the price of the SOL token. SOL has fallen 60% from its all-time high of $295 on January 19 to $117. This decline is attributed to a broader market sell-off and the unlocking of investor tokens beginning March 1. The situation for Solana-based meme coins is even more dire. Coins like FARTCOIN, GOAT, and ARC, which previously led the market, have dropped 85% to 95% from their peak prices in the fourth quarter of 2024. Cryptocurrency analyst 0xBreadGuy commented on the collapse of the Solana meme coin market via social media platform X, stating, "People were enamored with the portfolio screenshots and ignored the immature revenue extraction structures based on SVM meme coins. The MELANIA and LIBRA incidents shattered these illusions, and market risk appetite vanished. It's time to move on to new narratives."