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.