Solana down 8% to $124, TVL drops to $6.23 billion.
TL;DR
- Solana down 8% to $124, TVL drops to $6.23 billion
- The layer-1 network maintains its NFT lead
- $485 million flowed out of Solana in February
- SOL’s revenue drops over 90% from January highs
- The Solana ecosystem’s market cap and trading volumes tanked this week
Introduction
More Trump tariff FUD, more Solana downside. This week $SOL plummeted more than 8% as Bitcoin also lost the $80K level, falling as low as $116 before recovering slightly to $124, leaving many investors questioning how low it will go before we see a reversal.
February proved to be an unforgiving month for Solana, as the layer-1 network experienced $485 million in capital outflows. But the bad news doesn’t end there.
Solana’s network revenue has taken a catastrophic dive, plummeting over 90% since its peak of $55 million during the meme coin craze. To make matters worse, its total value locked (TVL) has sharply declined, and the number of active wallets is on a downward spiral.
On the upside, Sol Strategies (CSE: HODL), a Canadian public company with a vested interest in the Solana ecosystem, is acquiring three new validators, a strategic effort involving 1.5 million staked SOL to decentralize and secure the network further.
Also, in huge news: Solana’s validators have voted to trim inflation by up to 80%.
Here is what happened in Solana this week.
Solana Numbers the Last 7 Days
Source: CoinMarketCap
- Price: $124, down >8%
- Market cap: $63.16 billion
- DeFi TVL: $6.63 billion
- Daily active addresses: >3.8million
- 24H trading volume: $6.16 billion
After narrowly escaping a loss last week, Solana is back in a downward spiral. Solana nosedived 8% this week as negative market sentiment continued to take its toll.
The numbers paint a grim picture: Solana’s TVL has dropped to $6.63 billion, hitting levels not seen since early November 2024. As if that weren’t enough, the number of active addresses has also fallen to 4 million, a clear sign of the growing challenges the network is grappling with.
Source: Artemis
After a break in losses last week, Solana's DEX trading volume is down 26% to just over $14 billion this week.
Source: DeFiLlama
Solana's DEXs weren’t spared from the market turmoil either, with all of them suffering steep losses.
Source: DeFiLlama
How Did Solana Stack Up Against Its Competitors?
Not even the historic White House Crypto Summit and the announcement of the U.S. Strategic Bitcoin Reserve could put the brakes on the crypto market’s freefall.
BNB held up with a modest dip of less than 3%, but Ethereum wasn’t so lucky, shedding more than 9% and slipping below the $2,000 mark. XRP and Solana experienced similar setbacks, while Bitcoin took a wild ride, plummeting below $77K before clawing its way back above $81K.
Source: CoinMarketCap
Ethereum, Solana, and Tron all took a hit in TVL, signaling a tough stretch for these major blockchain players. But there is a silver lining. Solana’s 24-hour app revenue outpaced Ethereum and Tron combined.
Source: DeFiLlama
Solana Ecosystem the Last Week
The Solana ecosystem couldn’t escape the carnage sweeping across the market this week. Its market cap took a hit, dropping 5.5%, while trading volume plummeted by 10%.
Source: CoinMarketCap
- Cronos (CRO) was flying against the wind this week as it earned 12% gains amid a bearish market.
- The majority of tokens have registered losses.
Source: CoinMarketCap
Top Gainers:
- Cronos (CRO): +12.26%
Top Losers:
- Grass (GRASS): -41.42%
- ai16z (AI16Z): -39.72%
- Virtuals Protocol (VIRTUAL): -34.46%
- Raydium (RAY): -26.1%
- Wormhole (W): -21.36%
Solana DeFi
- This week, Solana took a hit, losing 6% of its TVL, with Ethereum following closely behind in a similar slide.
- While the heavyweights faltered, Berachain suffered the smallest loss in the market.
Source: DeFiLlama
- Ethereum continues to dominate the DeFi space, firmly sitting at the top of the leaderboard.
- But the real drama is unfolding below as Bitcoin is rapidly closing the gap, inching closer to stealing Solana’s second-place spot.
Source: DeFiLlama
Solana Meme Coins
- Whoever had the foresight to short Solana's biggest meme coins this week is living the dream, basking in massive gains.
Source: CoinMarketCap
Top Losers:
- Gigachad (GIGA): -44.18%
- RETARDIO (RETARDIO): -40.25%
- Michi (MICHI): -31.21%
- Bobaoppa (BOBAOPPA): -30.79%
- FWOG (FWOG): -30.011%
Solana DePIN
Source: DePIN Scan
- The DePIN sector in Solana is in full meltdown mode, with Grass (GRASS), Nosana (NOS), and Hivemapper (HONEY) all plummeting by over 30% each.
NFTs
- Solana is still holding strong as the leader of the NFT space, commanding 27% of weekly users, but it’s not without competition.
- Ethereum closely follows with 24.8%, while Base has made strides, now accounting for 20.1%.
Source: NFT Pulse
Top 5 Solana News Stories
Solana's Transaction Fees Hit 2024 Low
Solana's transaction fees dropped to their lowest weekly total since September 2024, with just 53,800 SOL generated. This marks a 10% decline from the previous week.
Solana Revenue Plummets
Solana's revenue has dropped over 90% from January's high of $55 million, falling to just $4 million last week. This sharp decline comes as interest in meme coins fades, bringing Solana's earnings back to September 2024 levels.
Solana Faces $485M Outflows Amid Market Uncertainty
Solana experienced $485 million in outflows in February, reflecting the growing uncertainty in the cryptocurrency market.
Solana's AI Agents Ecosystem Drops Below $2 Billion
Solana's AI Agents ecosystem has fallen below $2 billion as demand for the sector declines, with ai16z (AI16Z) and Virtuals Protocol facing significant losses this week.
Meteora and Co-Founder’s X Accounts Hacked
Meteora's X account was briefly compromised, following a hack of co-founder Ben Chow's account, which posted accusations against meme coin founders.
What You Can Do Now
- Stay updated on Solana’s transaction trends to make informed investment decisions.
- Monitor Solana's revenue shifts closely to assess potential investment risks.
- Stay alert to Solana's market trends as it experienced outflows of nearly $500 million.
- Steer clear of Solana’s AI Agent ecosystem as it falters.
- Don't click links shared from suspicious social media accounts to avoid potential losses.
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