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Solana’s daily transaction fees have fallen to their lowest level in several months as the memecoin craze cools down.
Total daily transaction fees on the Solana blockchain have fallen to a level not seen since May 2024, marking a multi-month decline. Over the past month, the five most popular Solana-based memecoins have seen double-digit declines in value.
On Monday, daily transaction fees on Solana fell to $639,000. This represents a 65% drop from this month’s peak of $1.83 million on August 8, and an 87% drop from the all-time high of $5.08 million on March 18.
This decline reflects the decline in activity on the Solana network, with memecoin trading in particular taking the biggest hit. “I believe that the decreasing transaction fees are related to the cooling of the hype around memecoins,” said Ruslan Lienkha, Market Manager at YouHodler.
This observation is also in line with Coingecko data, which shows that the market capitalization of the Solana memecoin is currently $7.42 billion, down 2.6% in the last 24 hours. According to Coingecko data, the top five memecoins on the Solana network have all lost value in the past month. Notably, Dogwifhat, Bonk, Popcat, Book of Meme, and Cats in a Dogs World are down 28%, 30%, 18%, 14%, and 34% respectively.
Additionally, some Solana-based decentralized exchanges, which handle a large portion of memecoin trading, have also seen declines in total value locked (TVL). According to DefiLlama data, TVL on Raydium has decreased by almost 20% in the last 30 days, while BonkSwap has fallen by more than 23% in the last month. Multi-chain memecoin indices have also declined in the last month. The Block’s GMCI Meme Index is down more than 17% in the last month, while Market Vector’s Memecoin Index has also reached a multi-month low.
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Lienkha noted that Solana is known as a major chain for memecoin projects, and the current user activity decline could indicate the final stage of memecoin hype in the current crypto market. “This is similar to what we saw with NFT trading in the previous crypto cycle, and as the memecoin bubble starts to deflate, Solana is becoming a lesser-used chain,” he added.
According to the price data, Solana’s price is up 2.9% in the last day, currently trading at $161.14. The token’s market cap is currently around $75 billion, reflecting a decline of around 14% in the past month.
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