- Fading hype hits Solana’s growth and revenue sharply.
- Global recession fears and token unlock weigh on SOL.
- Solana’s ETFs and Fire Dancer may boost growth soon
Solana (SOL) faced significant downward pressure Monday, April 7th, dropping 15% over 24 hours to hold above the $100 mark.
After hitting new all-time highs back in 2024, SOL has failed to maintain the kind of momentum it needed, in turn, hit by fading meme coin activity, broader market turmoil, and recent token supply increases.
How Much Did Fading Meme Coins Hurt SOL?
A key factor was the decline of the “Pump Fun” meme coin trend on Solana, which previously drove over 70% of new token launches and 56% of network transactions.
Meme coins like Dogecoin and others created a lot of hype. But now, meme coins are losing their appeal, and that’s been bad news for Solana. Since the start of 2025, Solana’s “Pump Fun” has seen a massive decline, with revenue dropping 92% in February.
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The Market Crash Doesn’t Help
Solana isn’t dealing with just the meme coin decline. The entire crypto market is in red with Bitcoin dropping to $75,000, with fears of a global recession holding liquidity away from risk-on assets like crypto. President Trump’s tariffs to take effect from Wednesday have pushed investors to sell off risky assets, and Solana has been one of its fallout.
Adding to this, a huge amount of Solana tokens—$200 million worth—were unlocked recently. This caused the price of SOL to drop massively. Many whales (large investors) took this opportunity to sell off their holdings, further pushing the price down. However, according to AltcoinBuzz, with high trading volumes on platforms like Binance, it’s possible that Solana could recover from this short-term dip.
Related: All is Set For The Second Crypto Task Force Roundtable on April 11
Rising Competition
Solana also faces increasing competition from projects like Cardano’s privacy-focused Midnight and the speed-oriented Sui blockchain are gaining attention, potentially challenging Solana’s market share among top Layer 1 platforms.
Catalysts for SOL Recovery
Despite the challenges, the analyst said that it’s not all doom and gloom for Solana. The blockchain has some big things coming. First, there’s growing interest in Solana-based exchange-traded funds (ETFs). The SEC recently acknowledged an ETF application for Solana from Fidelity.
A more crypto-open SEC leadership under nominee Paul Atkins could improve approval odds. Such an ETF could unlock significant institutional capital.
Solana is also developing Fire Dancer, a new consensus mechanism aiming to enhance network decentralization, scalability, and stability, representing a major upcoming technical upgrade. Holding the critical $100 support level will be key as the market weighs these headwinds against future potential.
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