Crypto is under immense selling pressure, and Solana, one of the leading smart contract platforms, is facing headwinds. After what can only be described as stellar two years of growth and prosperity, bears are now striking. According to reports, revenue from gas fees is down to a six-month low.
Solana Transaction Fees Hit Record Lows:
•Fees have dropped to their lowest level since September 2024, reflecting reduced network congestion and activity.
•The base fee remains 0.000005 SOL per transaction, while Priority Fees account for over 97.5% of total fees,… pic.twitter.com/BduW5svlw0
— ₿ona D€a (@BonaDeaCrypto) March 18, 2025
Interestingly, the dip coincides with falling SOL prices during this period. In just two months, the coin has tumbled by more than 50%, shrinking from its all-time high of $295 to below $130. At this pace, there are concerns that bears will press on, perhaps even pushing the coin below $100—a psychological level.
This scenario seems likely, especially if Bitcoin prices fail to find traction, slipping below $75,000 and the March 2025 lows in a continuing bear trend pattern.
The sell-off would, in turn, be worse for SOL because any drop in crypto valuation could force even more capital away from some of the best meme coins to buy in 2025. This means fewer tokens will launch on Pump.fun, and even fewer will be tied to the Solana DeFi ecosystem.
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Solana Fees And Revenue Falling On Waning Meme Coin Activity
As seen in the past, onchain activity—especially from meme coins—was a major catalyst for SOL bulls, driving demand throughout 2024 when the coin emerged as one of the best cryptos to buy.
At the peak of the Solana meme coin frenzy in January 2025, revenue from gas fees spiked to all-time highs. According to DeFiLlama, Solana generated over 248 million SOL in fees—a sharp increase from the 194 million SOL recorded in November 2024 when Donald Trump won.
In January 2025, weekly gas fees surged to over $55 million in a single day, with Pump.fun alone generating over $15 million in daily fees.
Amid the frenzied speculation in some of the best meme coins to buy—including PNUT, TRUMP, and MELANIA—priority fees on Solana rose in tandem, generating even more revenue for the network as traders raced to get their transactions through.
Pump Fun’s volume sinks to $73mil today. pic.twitter.com/uZ5wyk8dws
— Kader Calls (@kadercalls) March 17, 2025
However, as market sentiment shifts, meme coin demand is waning. Since December 2024, the total market cap of all meme coins has dropped by more than 50%, sliding from over $120 billion to nearly $50 billion.
Coinciding with this crash is a sharp decline in the valuation of some top meme coins like TRUMP, Dogecoin, and Shiba Inu.
On Pump.fun—one of the top revenue engines for Solana—revenue is down by over 95%, shrinking from an average of $2 million in February 2025 to less than $150,000 in March. This contraction explains the sharp decline in gas fees on Solana, which are down by over 90% from January 2025 highs.
Notably, the downturn isn’t limited to meme coins. The Solana DeFi ecosystem has also taken a hit. The total value locked (TVL) is down from $12 billion in January 2025 to $6.7 billion at press time.
Will SOL Fall To $100?
There are now concerns that shrinking network activity could spark whales to sell. It will especially be the case if prices continue sliding, failing to reclaim $150 and $170.
Yesterday, Pump.fun moved 196,370 SOL—worth over $25 million—to Kraken. Transfers to exchanges are usually bearish, and thus, may have a negative bearing on SOL.
Pumpfun(@pumpdotfun) deposited 196,370 $SOL($25.3M) to #Kraken again 2 hours ago.
So far, #Pumpfun has deposited 2,629,656 $SOL($511M) to #Kraken at $194 and sold 264,373 $SOL for 41.64M $USDC at $158.#Pumpfun has earned a total of 3,184,205 $SOL($402.5M).… pic.twitter.com/ap0EIMBYOL
— Lookonchain (@lookonchain) March 18, 2025
If more SOL transfers to centralized exchanges occur, it could drive SOL prices even lower. In turn, this would heap more pressure on a coin already struggling in the face of declining onchain activity. Smart investors are currently exploring alternatives. Of note, they have their eyes on some of the top cryptos analysts thinks will explode in 2025.
The substantial SOL transfers suggest that Pump.fun may be liquidating holdings, potentially increasing selling pressure on SOL. If selling accelerates, it could drive SOL prices lower, especially in a market already grappling with declining activity.
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Key Takeaways
- Solana’s gas fee revenue has fallen to a six-month low
- A decline in meme coin demand could explain why SOL is falling, sliding below $130
- Pump.fun moving SOL to Kraken, are whales exiting?
The post Solana Fees Plunge To 2024 Lows: Will SOL Drop Below $100? appeared first on 99Bitcoins.
