Solana’s price dwindled to a yearly low of $118 on Monday, March 10, 2025. The possible reason for this price dip is the ongoing debate regarding the trustworthiness of meme coins. The creation of new meme coins based on Solana and the failure of some of these coins in the market have caused widespread distrust among users.
The Solana-based meme coins are mainly created and deployed on the Pump.Fun, a memecoin creation platform based on the Solana network. The status of most memecoins in the Pump.Fun was miserable, which in turn affected the price. The “perfect storm” phenomenon caused the bad performance of Solana-based meme coins. Pump.Fun, created last year, is the breeding ground for new meme coins. However, many of the meme coins were created on Pump.Fun has failed to make it big in the market, thus causing distress for Solana users. This has caused a sudden drop in the price of SOL tokens.
Some Statistics
The price of the Solana token is currently at its yearly low. This price performance has also affected the daily transactions on the Pump.Fun platform. While Pump.Fun’s daily fees had reached an all-time high of $15.5 million in January. However, that figure fell 99% to $117,000 on Sunday, according to a Dune dashboard. The number of daily active addresses on Pump.Fun, meanwhile, halved to around 146,000 from 290,000.
The revenue of Pump.Fun platform has also been seriously affected by the fall in Solana’s price. The platform has made a revenue of $585 over the last year since its launch. However, the revenue earnings have slowed down, and analysts doubt whether the platform will be able to add another $100 to its revenue in the coming months.
The price of Solana decreased by 12.73% in the last year due to the surge in the production of meme coins by Pump.Fun, which is considered an asset not worth trusting. Solana reached its highest price on January 19, 2025, when it was trading at its all-time high of $ 295.40, while Solana’s lowest price was recorded on May 11, 2020, when it was trading at its all-time low of $ 0.503701.
The price is currently down by 58% from the all-time high. The lowest price since its ATH was $ 112.90 (cycle low). The highest SOL price since the last cycle low was $ 123.61 (cycle high). Solana is currently trading at 0.20 % below the cycle high and 9.26% above the cycle low.
Other Causes For Solana’s Price Drop
In 2022, when the FTX exchange collapsed, the exchange was left with a huge amount of locked Solana tokens. While some of these tokens were auctioned off as such, a portion of it was kept locked by the FTX exchange’s bankruptcy estate. About 11.6 million locked Solana tokens were unlocked recently. The sudden influx of $1.3 billion worth of Solana tokens into the market and the broad instability in the markets caused by the US’s trade tariffs have affected Solana’s price.
Also Read: Meme Coin Trading In 2025: 7 Best Exchanges You Should Know
The Bottom Line: Will Solana Rebound?
While the price prediction for Solana tokens is marred with a heavily bearish sentiment and its Fear and Greed index showing extreme fear, the news of an upcoming Solana exchange-traded fund (ETF) this year is a ray of hope for the token’s performance.
However, the extent to which the price will rise is unpredictable. The chances are high that the bearish sentiment will prevail for long. Even if Solana rebounds in price, it will not be strong enough to overcome the downfall caused by the “perfect storm” that has battered its price.
