By the end of 2024, Solana was being hailed as Ethereum’s biggest rival. Fast transactions, low fees, and a booming memecoin ecosystem have made it the preferred blockchain for retail traders. But in the fourth quarter of 2025, the picture changed dramatically.
Activity on the Solana network has plummeted by nearly 97 percent. Where once there were over 30 million active traders every month, that number has now fallen below 1 million. This isn’t just a decline in numbers; it raises serious questions about Solana’s entire growth model.
Why this news matters
The true strength of any blockchain lies in its user base and real-world network usage. Prices fluctuate, but when active users suddenly disappear, it signals a weakening of confidence in the network.
In Solana’s case, the decline isn’t solely due to a market crash. Bitcoin itself fell by more than 30 percent, but Solana’s drop was far steeper. This is due to the network’s excessive reliance on memecoins and high-risk trading.
Memecoins: Growth Engine or Weakness?
Over the past two years, memecoins generated massive traffic and revenue on Solana. This was the reason SOL made its historic leap from $8 to nearly $300. But in 2025, when risk began to leave the market, memecoins were the first to collapse.
Solana supporters don’t see this as a negative. According to them, memecoins stress-tested the network’s capabilities and demonstrated that Solana can handle large-scale transactions. They argue that speculative traders will now be replaced by stablecoin users, equity-linked products, and real-world payment applications.
The problem is that this shift is currently only a possibility, not a reality.
Impact on Price and Investor Concerns
As memecoin activity cooled down, the price of SOL also came under pressure. From its peak of nearly $300, it has fallen to around $120 – a drop of approximately 58 percent. Some analysts believe that if network activity doesn’t recover quickly, SOL could slide to $50-$75 in the first half of 2026. Meanwhile, some traders are anticipating a technical rebound due to the heavy accumulation of short positions.
Solana vs. Ethereum: Where’s the Real Difference?
Ethereum generated approximately $1.4 billion in revenue in 2025, while Solana was limited to around $500 million. This decline from Solana’s $2.5 billion in revenue in 2024 clearly shows that its income is not stable.
Ethereum’s strength lies in its institutional adoption. Banks, funds, and large payment networks are already building on Ethereum. While Solana has attracted interest from companies like Visa, large-scale adoption is still in its early stages.
What’s Next: The End or a New Beginning?
This is not the end for Solana, but a crucial turning point. If the network shifts from gambling-driven activity to stablecoin settlements, real-world assets, and payment use cases, this downturn could prove to be a reset.
However, if memecoins retain their primary identity, Solana will continue to be hit hardest in every market downturn.
The next 12 months will determine whether Solana was merely a fast blockchain or a network that could mature over time.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions
