TL;DR
- Fees generated by the Solana network have fallen to a six-month low, reaching 3,800 SOL on August 31, with a slight recovery to 4,000 SOL by September 6.
- Jito validator tips have also hit six-month lows, dropping to 2,610 SOL last Friday.
- The decline in fees and the popularity of Pump.fun, which has seen an 82% drop in revenue, along with a 35% decrease in SOL’s price, reflect a direct relationship between these factors.
Fees generated by the Solana network have reached their lowest point in six months, reflecting recent fluctuations in the crypto market.
On August 31, the Solana network reported approximately 3,800 SOL in daily fees. Although this figure has slightly increased to 4,000 SOL by September 6, it remains significantly lower than the levels observed during the second quarter of the year, when daily fees easily exceeded 10,000 SOL.
In addition to the overall decrease in fees, Jito validator tips have also hit six-month lows, falling to 2,610 SOL last Friday. This is the lowest level since late February 2024, indicating a general trend of reduced revenue associated with the network.
Solana Falls 35% Since Late July
A notable factor in this trend is the correlation between the decline in fees and the drop in popularity of Pump.fun, a major driver of activity on Solana. Pump.fun’s popularity has decreased considerably, with its revenue falling from $2.31 million on July 30 to just $409,000 on September 6, representing an 82% drop. This decline coincides with the drop in fees generated on the SOL network.
In addition to the decrease in Pump.fun’s popularity, the price of SOL has also seen a significant reduction, experiencing a roughly 35% decrease since late July. The drop in SOL’s value and the reduction in fees and the popularity of Pump.fun suggest a direct relationship between these factors.
Solana is experiencing a challenging period due to instability in the cryptocurrency market, exacerbated by a combination of factors related to its ecosystem.
