Decline in Solana Transaction Fees Signals Worries: Will SOL Fall Below $100?
There’s a noticeable decline in revenue and on-chain activity on Solana, raising fears about the stability of SOL. With the coin having fallen more than 50% from its all-time high, the question arises: will bears drive prices below $100?
Recent Developments
Crypto is under significant selling pressure. Solana, a leading smart contract platform, faces challenges following two years of growth. Reports indicate revenue from gas fees has plummeted to a six-month low.
📉 Solana Transaction Fees Hit Record Lows: • Fees have declined to their lowest point since September 2024, indicating reduced network congestion and activity. • The base fee remains 0.000005 SOL per transaction, with Priority Fees making up over 97.5% of total fees. — ₿ona D€a (@BonaDeaCrypto) March 18, 2025
Interestingly, this drop aligns with a 50% decrease in SOL prices, now under $130, raising concerns that the price may fall below a psychologically significant level of $100.
The Impact of Meme Coins
The downturn coincides with a fall in demand for meme coins. Since December 2024, the total market cap of meme coins has shrunk over 50%, from more than $120 billion to nearly $50 billion. Memes had previously driven SOL demand, especially in early 2025 when revenue soared.
Recent activity has shown that Pump.fun, a top revenue driver for Solana, is down by over 95%, leading to an average reduction of gas fees by over 90% from January 2025 highs.
Concerns on Future Performance
As on-chain activity diminishes, whales may react by selling, especially if SOL fails to recover above $150 and $170. Moreover, movements of SOL to exchanges typically indicate bearish sentiment, which could further pressurize prices.
Conclusion
Should the selling trend continue, SOL could potentially see prices dropping further, thus exacerbating an already tense market environment. Investors are now looking towards alternatives, highlighting the urgent need for recovery in the cryptocurrency landscape.
