Solana's TVL Plummets 40% in 30 Days, Memecoins Crash 70%

Solana's total value locked (TVL) has plummeted by 40% in just 30 days, marking its worst monthly decline since the FTX collapse, according to DefiLlama. The network's TVL has fallen from a peak of $12.1 billion on Jan. 24 to $7.4 billion, signaling that investors are pulling liquidity and stepping back from DeFi projects. Major protocols like Raydium, Jupiter DEX, and Jito liquid staking have all suffered double-digit losses in locked funds.

The memecoin market on Solana has crashed nearly 70%, with valuations tumbling from $25 billion in December 2024 to just $8.3 billion today, according to DefiLlama. Many Solana-based meme tokens are down 80-90% from their peaks, and daily DEX trading volume has plunged from $22.1 billion on Jan. 19 to just $1.6 billion. This mass exodus from memecoins has severely impacted Solana's network activity and demand for SOL.

From a technical perspective, Solana's price has formed a bearish double-top pattern, with key support at $135. Analysts warn that losing this level could send SOL tumbling another 20% to $110. However, the RSI suggests oversold conditions, meaning a bounce could be on the table if demand picks up at these levels.