Solana Fees Drop 85% as Network Activity Wanes

Solana’s network has recently witnessed a notable decrease in transaction fees, which has sparked discussions about a potential shift in network activity and user engagement. The decline is marked by an 85% drop in weekly transaction fees compared to the peak levels observed earlier this year, raising concerns among investors and users. This trend is particularly evident in the significant reduction of Jito validator tips, which have paralleled the shrinking interest in Solana’s ecosystem, indicating a critical juncture for its future.

The transaction fees on the Solana network have plummeted to 53,800 SOL over the past week, marking the lowest weekly total since September 2024. This sharp decline underscores broader challenges within the ecosystem, where user engagement appears to be waning. Notably, 77% of these fees were from non-vote transactions, primarily users tipping network validators to expedite their transactions. This trend raises questions about the health of Solana’s blockchain, especially when considering the 10% drop in fees from the previous week, which offers a glimmer of hope compared to the ongoing average decline of 25% seen over the past six weeks.

The excitement surrounding the launch of the $TRUMP and $MELANIA memecoins appears to have peaked earlier this year, with transaction fees now down 85% from the January high of 361,000 SOL. Such exuberance propelled the network to new heights, yet it seems the hype has quickly faded. This trend is mirrored in the reduced Jito validator tips, which averaged approximately $11,300 per day last week, a significant drop compared to the $62,000 per day in the week following the $TRUMP launch. Furthermore, data reveals a 35% decrease in the 7-day moving average of active addresses on Solana, signaling a reduction in network participants and activity.

Pump.fun, a key platform for generating tokens on Solana, has also been impacted by these declines. Last week, only 0.89% of tokens created on pump.fun transitioned to Raydium daily, compared to an average of 1.6% earlier in January. This substantial decrease correlates to the overall decline in network activity and investor enthusiasm. For tokens launched on pump.fun, that migration signifies a successful bonding curve completion, achieving a market cap of around $6