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Sujit Kumar
Sep 14, 2024
by Sujit Kumar

Solana Transaction Fees Hit Six-Month Low Amid Decline in Meme Coin Activity

Solana Transaction Fees Hit Six-Month Low

Table of contents

  1. Impact of Meme Coin Slowdown
  2. Revenue and User Activity Drop
Solana’s transaction fee volume has plummeted to its lowest level since 2023, signaling a sharp decrease in network activity as interest in meme coins fades. According to Dune Analytics, Solana users spent just $146,411 on transaction fees on September 12, marking a significant drop from the $5.08 million peak on March 18. The average transaction fee also fell to $0.0053 on September 7, hitting a six-month low.

Impact of Meme Coin Slowdown

The decline in Solana’s fees can be largely attributed to the waning activity in the meme token sector, particularly on the PumpFun startup platform. New token launches on PumpFun dropped to just 4,580 on September 8, a staggering 77.6% decrease from 20,465 tokens the previous month. Trading volumes on decentralized exchanges (DEX) associated with PumpFun also saw a sharp decline, falling 81.7% to $123.1 million on September 7 from a peak of $674.1 million in June.

Revenue and User Activity Drop

PumpFun’s revenue saw a massive 92% drop, falling from $5.33 million to just $425,000. Additionally, active user numbers have shrunk, with only 35,212 participants, the lowest since May. This overall drop in DEX activity significantly impacted Solana’s revenue, with the network processing just $535.1 million on August 31, marking a six-month low.

As the meme coin hype subsides, Solana’s network will need to look toward other sectors to regain momentum and stabilize its transaction fee volume.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Solana six-month low meme coin activity
Solana Transaction Fees Hit Six-Month Low Amid Decline in Meme Coin Activity
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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