Solana’s Transaction Fees Plummet as Network Activity Declines

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Recent data reveals that the transaction fees on the Solana network have hit their lowest point since September 2024, amounting to approximately 53,800 SOL coins. Notably, 77% of these fees are attributed to “tips” paid by users to speed up their transactions. Meanwhile, the value of SOL has dropped nearly 50% since January 20, indicating a significant decline in network activity.

Stunning Drop in Weekly Transaction Fees on Solana Network

Transaction fees on the Solana network decreased by 10% compared to the previous week, reducing the average decline rate to 25% over the last six weeks. However, it remains concerning that this figure is 85% lower than the record level of 361,000 SOL reached at the end of January. The decline can be largely attributed to the waning interest following the launch of popular memecoins like TRUMP and MELANIA.

Daily tips paid to Jito validators plummeted from $62,000 in January to just $11,300. During this time, the seven-day average of active addresses also saw a 35% drop. The sharp decline in SOL’s price and weakened network activity have heightened concerns among users.

Impact of Memecoins on the Solana Network

The leading memecoin creation platform on Solana, Pump.fun, is experiencing a similar stagnation. Last week, only 0.89% of the memecoins created on the platform transitioned to Raydium, down from 1.6% in the third week of January. To transition to Raydium, a memecoin must achieve a market value of $69,000.

Despite hundreds of thousands of memecoins being generated daily on Pump.fun, the declining transition rate to Raydium clearly reflects a drop in liquidity and interest within the Solana network. The downturn following the TRUMP coin launch suggests that the network has reached its peak in both usage and price, entering a distinct downward trend.

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