Solana’s Valuation Dips Below Realised Price for the First Time in Three Years

The price of the cryptocurrency Solana has fallen below its realised value for the first time in approximately three years, with a difference of 8%. This was noted by analysts at Glassnode.

At the time of writing, SOL is trading around $124. The realised price stands at $134, indicating the average cost at which investors acquired their coins. The current situation means that many Solana supporters are facing “paper” losses.

Compared to the all-time high reached on January 19 ATH (at $293.31 according to CoinGecko), the price of SOL has dropped by 57.7%.

Fundamental Deterioration

Amidst the decline in hype around meme coins, there is a sharp decrease in the TVL of the Solana ecosystem and its on-chain revenues.

Compared to the January peak, the first indicator has fallen by more than 45%, and the second by 93%.

Approximately 80% of Solana’s network revenue comes from commission income from meme coin trading on platforms like Pump.fun, according to a VanEck report.

The “funny coin factory” revenues peaked above $15 million in the second half of January, but by March 10, the daily figure was around $130,000.

The GMCI Meme Index, reflecting the capitalisation of major meme coins, is also steadily declining.

Some traders anticipate a potential shift in the SOL/ETH pair, as a series of scandals involving coins like TRUMP and LIBRA tarnishes the reputation of the “people’s cryptocurrency” ecosystem.