Solana Enters A Low-Interest Phase After November 2024 All-Time High — Here’s Why

Overview

Solana has transitioned from a rapid ascent to a challenging phase of low interest and market recalibration. Following its all-time high in November 2024, the network is now grappling with declining momentum and a critical evaluation of its future demand and relevance in the crypto space.

What Happened

After reaching a historic all-time high of $296 in November 2024, Solana has struggled to regain its previous momentum. This decline is attributed to a combination of technical exhaustion and a market recalibration following an aggressive price run-up. Investors are now left to ponder whether new demand will arise or if the network requires a fresh catalyst to regain its standing.

Crypto trader Ardi has noted a significant decrease in market interest since Solana’s peak, highlighting that buying activity has predominantly come from retail-sized wallets, particularly those making purchases between $0 and $1,000. This trend emphasizes a stark contrast in market participation, as larger wallets—those classified as mid-sized, ranging from $0 to $100,000, and institutional-sized, between $100,000 and $10 million—have been on a steady decline for approximately 13 months.

The data showcases a notable divergence in wallet demographics. While retail wallets have shown consistent growth, larger wallets have been decreasing in activity, indicating that major players may have been planning their exits well before the peak in October. This situation raises the question of whether Solana’s value is now closely tied to the performance of memecoins. There is a near-perfect correlation between SOL’s demand and the activity of memecoins on the network, suggesting that without the excitement surrounding these tokens, investor interest may wane significantly.

From author

The current phase for Solana serves as a critical juncture for the network. The substantial drop in active monthly traders from approximately 30 million to under 1 million illustrates a staggering 97% decline in network activity. This sharp decrease in participation signals a potential vulnerability in Solana’s growth strategy, which was heavily reliant on the memecoin boom. As the hype around memecoins fades, Solana faces a pressing challenge in finding sustainable demand to support its value.

Furthermore, the disparity in network revenue is striking. Solana’s revenue has plummeted from $2.5 billion in 2024 to $500 million in 2025, marking a fivefold decrease year-over-year. In contrast, Ethereum has managed to generate $1.4 billion in revenue during the same period, outperforming Solana by a significant margin. This highlights the challenges Solana must confront, as it navigates a landscape where larger competitors continue to thrive.

Impact on the crypto market

• Solana’s struggle to regain momentum may impact investor sentiment towards altcoins, particularly those reliant on speculative trading.
• The decline in active traders and network revenue could signal a broader trend affecting other cryptocurrencies that have similarly relied on retail interest.
• The close correlation between SOL’s demand and memecoins raises concerns about the sustainability of its value, potentially leading to increased volatility.
• As major players exit, the shift in wallet demographics could result in less institutional confidence in Solana’s long-term viability.
• The performance gap between Solana and Ethereum could influence investor decisions, drawing attention away from Solana as a viable alternative.