Solana meme trading volume dips below 5%

The overall cryptocurrency market has struggled with overwhelming selling pressure in recent weeks, with volatility and liquidity thinning dominating the sector.

Meanwhile, the broader uncertainty has influenced trading behaviour on several chains, and Solana is feeling the heat.

As bearish sentiments prevail, traders are exiting riskier bets.

That has seen meme activity on the SOL blockchain collapse to the lowest level in nearly two years.

According to Blockworks Research’s latest data, meme trading on Solana decentralised exchanges now accounts for less than 5% of 24-hour volume.

Source – BlockworksThat represents a dramatic collapse from the massive frenzy recorded at the end of last year.

Notably, meme tokens shaped Solana’s narrative in December 2024, capturing over 70% of daily activity.

While analysts have reiterated that meme tokens are a cornerstone for the market, a shift is now visible.

The current trends show that although Solana retains its culture of speed and speculative trading, markets have moved into a more selective phase.

What influenced the decline

Various factors have contributed to the dried meme cryptocurrency activity on Solana’s platform.

First and foremost, months of multiple token launches created an atmosphere that made winning rare.

Fraudsters and weak liquidity rattled many participants, prompting a pause from consistent speculation.

Also, fraudulent activities involving high-profile figures killed the momentum.

For instance, the broader meme sector lost credibility following the Milei-linked LIBRA scam and $TRUMP meme tokens.

Such events discouraged new investors as the existing ones retreated.

For context, Donald Trump’s meme token crashed from an ATH of around $75 to $6 at press time.

Also, the cryptocurrency market is shifting to utility-driven narratives as it matures.

New categories are also rising on the Solana blockchain, including high-throughput AI-centred protocols, RWA experimentation, and DeFi protocols with more stable earning opportunities.

With solid narratives gaining momentum, market players naturally moved from meme assets to more utility-focused projects.

Also, the broader market uncertainty has made investors more cautious.

Indeed, cryptocurrencies have failed to deliver what analysts expected despite positive developments like ETF launches and friendly regulations.

As the overall market underperforms, many players are preferring holding stablecoins, investing in long-term ecosystems, or farming yields.

An end of an era for Solana memes?

Despite the staggering collapse, it remains too early to declare the end of Solana-based meme assets.

Generally, theme tokens move in unique stages: hype, exhaustion, collapse, and recovery.

Moreover, meme cryptocurrencies are always the most hit during bearish cycles.

Solana still boasts the capabilities and tools, including high throughput, a viral community culture, and cheap transactions, that can spark a new cycle for meme tokens when broader sentiment shifts.

The post Solana meme trading volume dips below 5% appeared first on Invezz