Solana’s price has experienced a significant decline of over 50% from its all-time high of $295 in January, potentially influenced by a slowdown in meme coin trading activity. This drop marks Solana’s worst monthly performance since the FTX collapse in November 2022, with a 38% loss over the past month. Declining popularity among memecoin traders, previously key drivers for Solana’s on-chain activity, has played a significant role in this downturn. 8.1 million tokens were minted on Pump.fun, Solana’s prominent meme coin trading platform, generating $577 million in fees by February 26th. However, the momentum behind this activity has seemingly faded as trading volume on Pump.fun plummeted 94% within a single day, from $89.5 million to just $5.03 million. This decline coincides with a broader downturn in the memecoin market. 7.13 billion dollars remain locked in Solana’s decentralized finance ecosystem following a loss of nearly 5 billion dollars in less than a month according to DefiLlama data. The trading volume on Raydium, a decentralized exchange that hosts Pump.fun’s graduated memecoins, has also taken a hit, dropping 50% over the past month. Capital is currently shifting to other networks as Solana’s activity wanes. Over $500 million has been bridged to Ethereum (ETH), Arbitrum (ARB), and Sonic (SONIC) in the past 30 days. The current SOL price stands at $142, down 15% over the last 7 days. This downward trend sees bulls struggling to establish a support level. The $140 mark serves as a key threshold; if Solana fails to hold above this level, further declines may occur. A break below the $125- $130 range could push SOL prices down to levels not seen since August 2024. Solana needs to regain the $150 mark and witness resurgence in TVL and on-chain activity to regain momentum. Without this, further price declines remain a possibility, contributing to heightened uncertainty. An upcoming 11.2 million token unlock on March 1st could exacerbate this situation, along with the lack of an expected Solana ETF approval in the near future. This absence of institutional backing diminishes the likelihood of any immediate market catalysts.