According to data from The Block, daily transaction fees on the Solana network have dropped to their lowest level in six months, primarily due to the decline of the memecoin trend.
Specifically, on September 6, total transaction fees on Solana reached just 4,000 SOL, a sharp 60% decrease from the average of 10,000 SOL per day in Q2 2024. This period marked the peak of the memecoin craze within the ecosystem, with the platform pump.fun leading the trend.
Previously, pump.fun generated up to $2 million in transaction fees per day. This made pump.fun the top revenue-generating protocol in the crypto industry in July, surpassing even popular blockchains like Ethereum. However, this rapid growth brought with it several issues, such as rampant pump-and-dump schemes due to the ease of token creation, along with MEV bots interfering with investor transactions.
Related: Solana’s Memecoin Creation Platform Faces Numerous Challenges
Currently, pump.fun’s transaction fee revenue has significantly declined to just over $300,000 per day. This figure is now lower than that of many DeFi protocols on Ethereum, BNB Chain, and stablecoin projects.
A separate report last week also noted that Solana’s transaction volume had dropped to its lowest level in three months. However, it is worth noting that the number of active wallets remains high.
This trend is not limited to Solana. Ethereum has also seen transaction fees fall to record lows in recent years. This reflects the overall state of the cryptocurrency market, with a lack of new breakthroughs to drive on-chain activity, coupled with the continuous price corrections of major coins over the past three months.
In terms of price, SOL has dropped 37.5% since its peak in March and is currently trading around the $130 mark.
