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Is Solana Dead?

  • 5 minutes
  • Apr 03, 2025

  • Swyftx

Key Takeaways

  • Solana’s sharp downturn in both token price and user activity is closely tied to the rise and fall of meme coin speculation. 
  • While key metrics like daily transactions and TVL have declined, on-chain indicators show signs of recovery and resilience. 
  • Compared to other Layer 1 (L1) blockchains, Solana remains ahead in active users and ecosystem traction, suggesting its presence is still significant.

Why Has Solana Been Struggling? 

Solana’s image has taken a hit. The blockchain that once thrived off memecoin mania now finds itself bruised by memecoin dismay. Speculators jumped head-first into Solana-based memecoins during the peak of hype, which culminated in the price of Trump Coin surging 600% in a matter of hours. But as prices collapsed, so too did confidence. 

This speculative bubble not only torched portfolios but also dented Solana’s perceived legitimacy. The dramatic drawdown in memecoin prices coincided with a sharp drop in SOL itself, fuelling talk that Solana might be another “dead chain” walking. If Solana’s niche is a memecoin chain, and memecoins are under pressure, what does that say for the ecosystem’s health?  

But the full story lies deeper in the data.

What On-Chain Metrics Say 

Daily Active Addresses (DAA) 

DAA on Solana has fallen heavily so far in 2025, reflecting the broader pullback in market enthusiasm. This metric peaked in November 2024 with 7.5 million addresses, but has experienced a continual decline to lows of 3.9 million in early March 2025. 

However, this metric has recently stabilised and even started to climb again. In raw numbers, Solana still leads most other Layer  (L1) blockchains by a country mile. For example, Ethereum and Sui have 1.3 million and 400,000 DAAs, respectively. 

Solana’s DAA plummeted from its Nov. 2024 highs and has recently bounced slightly (Source: Artemis) 

This suggests that while many users left during the downturn, a committed base remains. And in blockchain, maintaining user stickiness is key – especially during market drawbacks. The ongoing recovery implies Solana’s core community and dApp developers haven’t abandoned ship, which may hold it in good stead going forward. 

Daily transactions

Over the past month, there has been a significant decline in the number of daily transactions on the Solana blockchain. Activity has plummeted, underscoring how deeply memecoin trading was embedded in Solana’s usage. With much of that speculative flow gone, the chain is currently seeing far less movement. 

Daily transactions have plummeted from the start of March to a level not seen since 2023 (Source: Artemis) 

This sharp contraction in on-chain activity highlights Solana’s challenge. To regain momentum, it needs new use cases and sustained user demand beyond the froth of meme culture. Until then, the data will likely reflect a quieter chain. 

But notably, even with the heights of 800 million daily transactions shrinking to 180 million, Solana remains leagues ahead of its rivals. Through March, Ethereum and Sui have 2.5 million and 8.5 million daily transactions, respectively, demonstrating that even after this dramatic fall, Solana is still used significantly more than other comparable Layer 1s.

Total Value Locked (TVL) 

Solana’s TVL has also fallen but appears to be levelling out. Compared to daily transactions, TVL arguably says more about the degree to which a blockchain is trusted (i.e. are users willing to keep their valuable cryptocurrencies tied up in a smart contract on this blockchain?). 

In that respect, Solana’s TVL of $14 billion ($8.8 billion USD) remains a standout second place, though is well behind Ethereum’s TVL of $111 billion ($70 billion USD) and firmly ahead of Sui’s $2.5 billion ($1.6 billion USD).

Solana’s TVL, while down from its peak, is still in a solid position compared to several other L1 competitors. Source

Sui and other newer L1s have grown fast, but Solana still commands a notable lead in this area. The chain’s consistent TVL, even in a downturn, speaks to the stickiness of its DeFi protocols and the confidence of long-term capital. 

Conclusion

Solana has taken a hit, no doubt. The crash in memecoin sentiment and price action has dragged usage down across multiple metrics. But when you dig into the data, the narrative that Solana is “dead” doesn’t hold. Developers still want to build on Solana – as that is where the users are.

It continues to outpace competitors in user engagement and DeFi capital. Its tech stack, community, and network effects give it resilience. As blockchain adoption moves forward, these fundamentals should help Solana remain a top-tier player, even if the memecoin frenzy never returns. 

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