Solana Faces Significant Network Activity Decline
Solana, the blockchain that once positioned itself among the top cryptocurrency networks, is facing an uncertain future. A staggering 97% drop in network activity in Q4 2025 has sparked concerns about its long-term viability. From a peak of over 30 million monthly active traders in late 2024, the numbers have dwindled to under 1 million in 2025. Could this be the end for Solana, or will it find new ways to adapt and thrive?
Memecoins: A Double-Edged Sword for Solana
Memecoins, which played a crucial role in Solana’s rise, have now become a liability. During the broader cryptocurrency market downturn in 2025, memecoins were among the first assets to lose traction. This dependency on volatile memecoins has dragged Solana’s growth, reflected in SOL’s price crash from nearly $300 to its yearly support level of $120, a decline of 58%.
However, Solana advocates argue that memecoins served as a successful test for the network’s capabilities. Marty Party, a cryptocurrency strategist, stated, “Memecoin gamblers left after a successful liveness test, but they will be replaced by equity traders and 50 million stablecoin users.” This hints at a more sustainable future where institutional interest, like Visa’s stablecoin settlement integration, could strengthen the ecosystem.
Revenue Comparison: Solana vs. Ethereum
The competition between Solana and Ethereum is heating up. While Ethereum earned over $1.4 billion in revenue in 2025, Solana managed $502 million—a stark difference. This marks a significant drop from Solana’s $2.5 billion revenue in 2024, representing a fivefold decline. Industry experts have questioned whether permissionless protocols like Solana can consistently grow and maintain revenues under volatile conditions.
What’s Next for SOL in 2026?
The future of Solana’s native token, SOL, remains uncertain. Projections for its price in the first half of 2026 vary widely. Some analysts suggest it could drop to the $50-$75 range, while others see potential for a 15% rise to $134-$140. The latter scenario would be fueled by $1 billion in upside liquidity from leveraged shorts, according to CoinGlass data.
A Brighter Future?
Despite recent struggles, many believe Solana has the potential to reinvent its model. Shifting network activity away from speculative gambling, such as memecoin trading, towards applications like stablecoin transactions and decentralized equity markets could revitalize its ecosystem. If Solana succeeds in these pivots, it could close the revenue gap with Ethereum and regain investor trust.
Stay Updated on Solana’s Developments
For those following Solana’s journey, it’s crucial to stay informed about emerging trends in the cryptocurrency market. Consider integrating tools like a Ledger Nano X hardware wallet to securely store your SOL investments and other blockchain assets. Shop now to protect your crypto portfolio!
