• Solana’s native token (SOL) and total value locked (TVL) have both dropped over 40%, reflecting a major decline in usage and investor confidence.
  • Over US$1 billion in assets left the network in three months, mostly migrating to Ethereum and newer blockchains like Sui and Base.
  • The memecoin market on Solana plummeted more than 60%, with Pump.fun’s recent hack amplifying losses and damaging trust further.

Solana’s native cryptocurrency, SOL, is trading below US$137 (AU$219), representing a 52% drop from its all-time high of US$295 (AU$474) on January 19. 

According to CoinMarketCap data, the token has declined 41% over the past month. This is in line with a significant decline in the total value locked (TVL) across the Solana ecosystem, which also suffered a decline of about 40%.

A declining TVL means users are withdrawing assets from the blockchain’s decentralised applications (dApps), so less network usage, which means less value for SOL. 

Raydium, Solana’s biggest decentralised exchange (DEX), experienced the steepest decline, at -40% in just 30 days. Other major protocols also saw significant losses, including Jupiter DEX, -23%; Jito liquid staking, -39%; and Sanctum, -39%. 

These contractions have directly impacted on-chain volumes, which dropped from a weekly total of US$97 billion (AU$155.9 billion) in mid-January to US$11 billion (AU$17.7 billion) this week.

Related: Altseason Cancelled? CryptoQuant CEO Says Most “Won’t Make It”

Moreover, around US$300 million (AU$480 million) has left the Solana ecosystem, with most of the flows moving to Ethereum (ETH), Sui Network (SUI), and Base, among others. In the last 3 months, Solana has lost over $1 billion (AU$1.57 billion), with most of the flows also going to Ethereum.

Solana flows to other ecosystems, source: Artemis

Fun No More

Data from CoinGecko shows Solana’s memecoin market was the hardest hit, with many coins experiencing double-digit daily losses, pushing their respective market caps 80–90% below peak levels. 

The total market cap of Solana’s memecoins, including coins from Pump.fun, fell from US$25 billion (AU$40 billion) in December 2024 to US$8.6 billion (AU$13 billion) by late February —a decline of over 60% in less than three months.

Looking at data, around 8 million tokens have been launched since Pump.fun took off, which generated around US$550 million (AU$882 million) in revenue.

As if that wasn’t disastrous enough, Pump.fun’s X account recently got hacked, with the scammers promoting a phony “PUMP” token. The platform confirmed the hack on its official Telegram account.