Solana suffers critical blow from TVL decline and meme-coin weakness… down 4.5% vs previous day

Solana (SOL) is trading weak intraday. Investor sentiment has worsened due to a decline in assets deposited on the network and a slowdown in meme-coin trading.

As of 3:40 PM on the 13th (KST), Solana is trading at 132.66 dollars, down 4.58% from the previous day, according to CoinMarketCap.

Crypto outlet Cointelegraph analyzed that Solana has been trading below the 145 dollars level for 4 weeks due to a recent slowdown in demand for decentralized applications (dApp) on the network.

Solana's total value locked (TVL) reached an all-time high in September (about 15 billion dollars) but recently plunged to 7 billion dollars. The decline in TVL can be seen as an increase in the supply of Solana available for sale on the market as assets locked in smart contracts decrease. Over the same period, weekly revenue of Solana-based dApps also fell by more than 30%, currently recording 26 million dollars.

The contraction of the meme-coin market is also a burden. Since a large-scale leveraged liquidation occurred in the virtual asset market on October 10, liquidity has declined and investor sentiment toward high-risk assets such as meme coins has been greatly weakened. As trading volume at Solana-based decentralized exchanges (DEXs) that grew around meme coins has decreased, the overall profitability and activity of the Solana ecosystem have slowed.

However, some in the market view this trend as a result intertwined with the broader adjustment phase of the virtual asset market rather than a problem unique to Solana. Over the past 30 days, Solana network fee revenue decreased by 21%, which is a more stable trend compared to BNB Chain (-67%) and Ethereum (-41%) over the same period.