Solana Drops 15% to 14-Month Low Amid Market Meltdown

Solana (SOL) has experienced a significant decline, falling below the $100 mark for the first time in over a year, reaching a 14-month low. This drop is attributed to escalating macroeconomic fears and a decrease in network activity. At the time of reporting, SOL was trading at $99.67, having briefly dipped to a session low of $96.58 earlier in the day. The token has lost more than 15% of its value in the past 24 hours, as a broader market meltdown affects both cryptocurrencies and equities.

The sell-off is exacerbated by rising global trade tensions and growing concerns of a financial crisis, with some analysts comparing the situation to the ‘Black Monday’ crash of 1987. As Solana’s price declines, its on-chain fundamentals are also weakening. The number of active addresses on the Solana network has decreased to 2.99 million as of April 4, based on the 7-day moving average. This represents a significant drop from January’s peak of nearly 5.69 million and marks a six-month low in sustained user activity.

A recent report highlighted the extent of this decline, noting that in March, Solana’s average transaction fees plummeted by 66%, stablecoin transfer volume decreased by 34%, and decentralized exchange (DEX) activity fell by more than half. Solana, once seen as a rising competitor to Ethereum (ETH), has seen its share of smart contract platform (SCP) DEX volume shrink to its lowest point since October 2024. Much of this decline is attributed to the cooling meme coin frenzy, with daily meme coin volumes on Solana collapsing from a peak of $12 billion in January to just $720 million by the end of March. Memecoins, excluding stablecoins and SOL, accounted for 92% of Solana’s remaining trading volume in March, highlighting their significant influence on the network’s revenues.

Despite the harsh correction, Solana’s core investor base appears to be holding firm. The recent price crash triggered liquidations totaling $73 million in leveraged positions, yet overall sentiment among long-term holders remains surprisingly steady, as evident from the derivatives data. Institutional adoption continues to grow, with recent expansions in crypto offerings that could help bring the asset closer to mainstream retail users. This ongoing support from institutional investors and the potential for increased retail adoption may provide a buffer against further declines and position Solana for a potential recovery in the future.