The total daily transaction fees are as follows: Solana brush
+0.82%
The value of blockchains measured in US dollars has fallen to levels not seen since early May 2024.
According to The Block’s data dashboard, Solana’s daily transaction fees fell to $639,000 on Monday. That’s down 65% from the current month high of $1.83 million on Aug. 8 and down 87% from the all-time high of $5.08 million on March 18.
According to Ruslan Lienkha, YouHodler’s head of markets, the decline in daily transaction fees suggests a decrease in activity on the Solana network, with memecoin trading being the most affected. “I think the lower transaction fees have something to do with the hype surrounding memecoins cooling down,” Lienkha told The Block.
This observation is consistent with Coingecko data, which shows that the current Solana Memecoin market cap is $7.42 billion, down 2.6% over the last 24 hours. According to Coingecko data, the top five Memecoins by market cap on the Solana network have all seen a decrease in value over the past month. Specifically, Dogwifhat, Bonk, Popcat, Book of Meme, and Cats in a Dogs World have decreased by 28%, 30%, 18%, 14%, and 34%, respectively.
There has also been a decline in the total value locked on some Solana-based decentralized exchanges that process significant volumes of memecoin transactions. According to DefiLlama data, Raydium’s TVL has fallen by nearly 20% over the past 30 days, while BonkSwap has fallen by over 23% over the past month. Multichain memecoin indices have been in decline over the past month. The Block’s GMCI Meme Index has fallen by over 17% over the past month, while Market Vector’s Memecoin Index has hit its lowest level in months.
MarketVector’s Mimecoin Index has been in a notable downtrend since March. Image: MarketVector.
Lienkha explained that Solana has been recognized as the core chain of the memecoin project, and that the current decline in user activity could represent the final stage of the memecoin hype in the current crypto market. “This is similar to what we have seen with NFT trading in previous crypto cycles, with Solana becoming a less utilized chain as the memecoin bubble bursts,” he added.
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