Solana gas fees drop 90 percent from peak

The Solana blockchain's gas fees have fallen by about 90% from their January 2025 peak. Back then, the network was pulling in about $35 million a week, down from just $4 million today.

The huge spike in January was due to the launch of memecoins linked to Trump and Melania. Before then, weekly earnings averaged between $6 million and $10 million.

Solana has long benefited from the memecoin hype. It was the blockchain on which most of these tokens were launched and traded. But after the Libra scandal, in which even the Argentine president was embroiled, the market collapsed. The hype was over - and that is now evident in Solana's numbers.

In the short term, this is a serious threat to Solana. In February, some 70% of trading volume on decentralized exchanges (DEX) came from the now collapsing memecoin market. According to research firm Messari, Telegram bots, trading apps and launchpads account for 60% of total app revenue on Solana.

Solana's position in the crypto market

Solana was launched in 2021 and has since become one of the largest blockchains in the crypto industry. Its current price is around $125, with a market capitalization of $63 billion. This places Solana at No. 6 among the most valuable cryptocurrencies.

Is this the price Solana is paying for his gamble on memecoins? That will have to be seen in the coming months.