Solana User Activity Plummets as Memecoin Scams Erode Trust

Many traders are losing faith, and capital is flowing to Ethereum and Arbitrum instead.

Memecoins have been a wild ride, but for Solana, they’re starting to cause real damage. Scammers launch hyped-up tokens, pump the price, then disappear with investor funds—leaving buyers empty-handed. As a result, trust in the Solana ecosystem is wearing thin.

Solana Users Flee as Ethereum and Arbitrum Gain Ground

According to recent data, Solana’s daily active addresses have plunged by nearly 40% in just a few weeks. This steep decline suggests that traders are packing their bags and looking for safer ground.

With trust in Solana shaken, many investors are taking their money elsewhere. Ethereum and Arbitrum have seen increased activity as traders seek more secure and established platforms. Unlike Solana, these networks have a more mature DeFi landscape and stronger security measures against bad actors.

LATEST: Solana user activity drops nearly 40% as memecoin rug pulls erode trust, driving capital outflows to Ethereum and Arbitrum. pic.twitter.com/8amRUxvd2b

— Cointelegraph (@Cointelegraph) February 21, 2025

Ethereum, the longtime king of smart contracts, continues to attract users who prefer its stability. Meanwhile, Arbitrum, a leading layer-2 solution, offers lower fees and faster transactions, making it an attractive alternative.

More About Solana

Solana has announced that Figure Markets will soon launch a new yield-generating stablecoin on its network. This stablecoin will offer users the ability to earn yield with no lockups, meaning they can access and use their funds 24/7 without restrictions.

yield generating stablecoin on Solana soon. no lockups, use 24/7 and secured on onchain.

internet capital markets https://t.co/pYJwiP7eDr

— Solana (@solana) February 21, 2025

Secured fully on-chain, it aims to provide a safer and more transparent alternative for those looking to earn passive income while maintaining full control of their assets.

Disclaimer

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