NAIROBI (CoinChapter.com) — Solana’s on-chain revenue has plummeted 93% from its January peak.

This reflects a rapid cooldown in memecoin trading. The downturn has also impacted Solana’s DeFi ecosystem, with total value locked (TVL) nearly halving in recent months.

Memecoin Frenzy Ends, Solana’s Revenue Plunges

Solana’s on-chain revenue skyrocketed to an all-time high of $55.3 million in mid-January, driven by a surge in memecoin minting. However, that momentum has since collapsed. According to DeFiLlama data, revenue has nosedived 93% to just $4 million last week, marking its lowest level since September.

Solana weekly revenue and TVL. Source: DefiLlama

Solana’s decentralized application (DApp) revenue has also suffered a steep decline, dropping 86% from $238 million in January to just $32 million last week. The primary driver behind the drop is the fading memecoin mania, which previously accounted for 80% of Solana’s network revenue.

A March 5 report by VanEck highlights the role of Pump.fun, a trading platform that fueled much of Solana’s memecoin activity. The platform saw daily revenue peak at $15 million in late January. By March 7, it had plunged 95% to just $800,000, per Dune Analytics data.

The peak of the frenzy coincided with the launch of Donald Trump’s TRUMP token on January 18, followed by Melania Trump’s MELANIA token on January 20. However, both tokens have since collapsed. TRUMP is down 86% from its high, now trading at $10.50, while MELANIA has lost 95% of its value, dropping to $0.71.

Solana’s DeFi TVL Tanks Nearly 50%

Solana’s DeFi ecosystem has also suffered alongside declining memecoin activity. TVL on the network has fallen from $12 billion to $6.4 billion over the past two months, marking a nearly 50% decrease.

Data from CoinMarketCap shows that the total memecoin market cap has plunged 68% from a December high of $137 billion to just $44 billion.

Meanwhile, Solana’s price has mirrored the downturn. After reaching an all-time high of $293 in mid-January, SOL has tumbled 58%, trading at $122 at the time of writing.

Whale Accumulation Sparks Optimism

Despite the market downturn, a major Solana whale has made an aggressive move to accumulate SOL. On March 11, Lookonchain data revealed that the whale withdrew 195,000 SOL—worth $23.2 million—from major exchanges, including Bybit, OKX, and Gate.io.

This accumulation comes amid broader market turmoil, with Bitcoin recently dropping below $76,000 following renewed macroeconomic fears. A March 11 X post from Onchain Lens further revealed that ‘Cumberland DRW’ staked 48,182 SOL—worth $5.72 million—underscoring reduced token supply on exchanges.

The whale’s buy-the-dip strategy has led to optimism among investors. This is particularly the case as Solana hovers within a strong demand zone between $110 and $127, according to trader ‘Lucky’ on X. The analyst suggested that a minor market movement could push SOL past $150.

Can SOL Recover?

Market participants are debating whether Solana can regain its bullish momentum. Crypto trader ‘Coinvo’ shared an X post suggesting that SOL is mirroring its 2021 bull run, signaling a potential rally ahead.

At the same time, Solana’s governance community is discussing a major tokenomics overhaul. A new proposal—Solana Improvement Document (SIMD)-0228—suggests shifting from a fixed inflation model to a dynamic, market-driven system. If approved, the change could alter SOL’s supply mechanics, potentially impacting long-term price trends.

Institutional interest in Solana remains intact despite recent setbacks. Franklin Templeton recently filed for a Solana trust in Delaware, following similar applications from Canary Capital and Grayscale. The move suggests that large investment firms are still betting on Solana’s long-term viability.

While Solana’s revenue collapse highlights the risks of speculative trading activity, recent whale accumulation and institutional moves suggest that confidence in the asset remains strong. Whether SOL can recover to its former highs remains to be seen, but the market’s reaction in the coming weeks will be critical.