Solana In Crisis: 40% Fewer Users, The Ecosystem Is Faltering

The Solana ecosystem is currently going through a turbulent period, due to the increase in scams related to memecoins. The fall in capital flows and the 40% decrease in active users testify to a loss of confidence among investors. This crisis could, however, clean up the market and strengthen the credibility of the network.

40% fewer users on Solana: Is the end near?

According to a recent report, the monthly inflow rate of capital to Solana and its MEME index has turned negative, reaching -5.9%. This decline marks a notable retreat from the peak in December 2024, primarily due to falling investments in memecoins.

Meanwhile, the number of active addresses on the Solana network has dropped to a weekly average of 9.5 million in February, a decrease of nearly 40% compared to the 15.6 million recorded in November 2024. Even the frenzy for memecoins seems to be slowing down. After a wave of enthusiasm for token creation, the momentum is waning, and memecoins are experiencing a sharp decline.

This downward trend in user activity is partly attributed to disappointing memecoin projects, particularly the LIBRA token, supported by Argentine President Javier Milei. This project was involved in a scam where over $107 million in liquidity was siphoned off, causing the ruin of over 13,000 investors.

A blessing in disguise?

In the face of this loss of confidence, millions of dollars in crypto have been transferred from Solana to other blockchains. Over $7.7 million has been moved to Arbitrum and over $6.9 million to Ethereum. Despite these challenges, some analysts believe that this purge could be beneficial in the long term for Solana. They suggest that eliminating bad actors and raising standards could enhance the network’s resilience and credibility.

Although scams related to memecoins have temporarily weakened activity and trust within the Solana ecosystem, this cleaning period could, according to some experts, lay the foundation for healthier and more sustainable growth for blockchain in the future.