• Solana network activity decline in 2025 stems primarily from a collapse in memecoin trading volumes.

• Trading volumes on Solana fell sharply as memecoins, a major driver, experienced over 90% reduction in activity.

• SOL price dropped 58% from nearly $300 to $120 support level, with Ethereum outperforming in revenue by a factor of three.

Solana network activity decline in 2025 triggers SOL price crash: Explore causes, memecoin impact, and comparisons with Ethereum. Stay informed on blockchain shifts and investment opportunities today.

What is causing the Solana network activity decline in 2025?

Solana network activity decline in 2025 is largely attributed to a dramatic reduction in memecoin trading, which had been a primary driver of traffic and revenue on the platform. From a peak of more than 30 million active traders in late 2024, activity has contracted to less than 1 million monthly traders by Q4 2025, coinciding with a broader market rout where Bitcoin prices fell over 30%. This downturn highlights Solana’s heavy reliance on speculative trading, prompting questions about its long-term sustainability.

Solana’s network activity has dropped by 97% in Q4 2025, and SOL’s price crash followed too.

From a peak of over 30 million active traders in late 2024, the network’s traction has dropped to less than 1 million monthly traders in 2025. 

One analyst wondered whether it was “over for Solana” amid muted activity. 

Source: Dune

Although the contraction in trading volumes in late 2025 was a broader market trend, with Bitcoin price falling by over 30%, Solana’s [SOL] case was a little more nuanced. 

How have memecoins influenced Solana’s performance?

Memecoins have played a dual role on Solana, acting as both a catalyst for growth and a vulnerability during market corrections. In the previous cycle, Solana’s blockchain saw explosive activity thanks to low transaction fees and high throughput, attracting memecoin projects that boosted daily active users to record levels. Data from Dune Analytics indicates that memecoin-related transactions accounted for up to 70% of Solana’s network volume in peak periods of 2024. However, as market sentiment shifted in 2025, memecoin trading volumes cratered by over 90%, directly impacting overall network metrics.

Solana and Hyperliquid have been key success stories this cycle. SOL, in particular, rallied from $8 to nearly $300, over 35x growth from 2022 cycle lows.

While the chain steadied and minimized network outages, memecoins remained a key revenue driver and traffic. 

During the 2025 market rout, memecoins were among the first to be hit. But Solana supporters, like Marty Party, always view memecoins as a ‘test’ for other ‘real-world’ applications. 

“Memecoin gamblers left after a successful liveness test, they will be replaced by equity traders and 50m stablecoin users – catch up.”

Expert analysis from blockchain researchers at Messari supports this view, noting that while memecoins provide initial liquidity and testing grounds for the protocol’s scalability, their volatility exposes Solana to rapid activity swings. Institutional interest, such as Visa’s exploration of Solana for stablecoin settlements, offers a pathway to diversify away from speculative assets. According to on-chain data from DeFi Llama, stablecoin volumes on Solana grew 25% year-over-year despite the overall decline, suggesting potential for more stable revenue streams. Nonetheless, the immediate effect has been a 58% SOL price decline from its 2025 high of nearly $300 to the $120 support level, underscoring the risks tied to memecoin dominance.

That being said, the chain has garnered some institutional interest, such as Visa for stablecoin settlements. However, the network resilience could be possible if network activity dominance shifts away from gambling. 

Frequently Asked Questions

What led to the 97% drop in Solana’s network activity in Q4 2025?

The sharp decline in Solana’s network activity in Q4 2025 was primarily driven by a collapse in memecoin trading volumes, which had fueled much of the platform’s traffic. Broader market pressures, including a 30% Bitcoin price drop, exacerbated the situation, reducing active traders from 30 million to under 1 million monthly. This highlights Solana’s sensitivity to speculative trends in the crypto ecosystem.

How does Solana compare to Ethereum in terms of 2025 revenue?

In 2025, Ethereum generated over $1.4 billion in annual revenue, surpassing Solana’s $502 million by a factor of nearly three. This gap widened from 2024, when Solana earned $2.5 billion, reflecting Ethereum’s stronger institutional adoption and diverse application ecosystem that provides more stable income sources compared to Solana’s memecoin-heavy activity.

Key Takeaways

• Memecoin Dependency: Solana’s network activity has relied heavily on memecoins, leading to a 97% drop when trading volumes fell over 90% in 2025.
• Revenue Disparity: Ethereum’s $1.4 billion revenue in 2025 outpaced Solana’s $502 million, a reversal from Solana’s stronger 2024 performance of $2.5 billion.
• Price Outlook: SOL has declined 58% to $120 support; analysts suggest potential for a 15% rebound to $140 or further drops to $50-$75 in 2026 based on market liquidity.

Solana vs. Ethereum

Perhaps, this could close the revenue gap with Ethereum, which leads in institutional adoption. So far, in 2025, Ethereum has made over $1.4 billion in annual revenue while Solana raked in $5022 million — A 3x difference. 

In 2024, however, Solana made $2.5 billion in revenue, suggesting a 5x decline this year. Anatoly Yakovenko called it a “crazy year,” adding that, 

“It’s been a crazy year. Can open permissionless protocols actually grow and maintain revenues is still an open question.”

Source: DeFi Dev

In terms of investor returns, SOL has underperformed ETH by 56% this year, a stark contrast to the over 24% relative gains made against ETH last year.

In fact, Fundstrat projected the SOL price could fall to $50-$75 range in H1 2026. 

For analyst Ted Pillows, however, there was a higher chance of a 15% surge to $134-$140, citing a massive $1 billion upside liquidity of leveraged shorts. 

Source: CoinGlass

Conclusion

The Solana network activity decline in 2025 and subsequent SOL price crash underscore the challenges of building sustainable blockchain ecosystems amid volatile crypto markets. While memecoins drove rapid growth, their downturn revealed vulnerabilities, contrasting with Ethereum’s more balanced revenue model. As institutional adoption grows, Solana has opportunities to pivot toward stable applications like stablecoin settlements, potentially stabilizing activity and closing the gap with competitors in the coming years. Investors should monitor on-chain metrics closely for signs of recovery and diversification.

Final Thoughts

• Solana’s key network activity driver, memecoins, has cratered by over 90% and dragged the price with it. 
• Ethereum outperformed Solana in annual revenue threefold, contrary to the 2024 performance.