Solana Price Recovery at Risk as SOL Meme Coin Activity Dries Up

Solana (SOL) is facing further downside risk amid a notable decline in meme coin activity on the blockchain as investors turn their attention to assets with strong fundamentals due to geopolitical tensions. At press time, Solana price was trading at $144 after an 8% decline in seven days, while the total market cap for meme coins created on the blockchain has declined below $10 billion.

Solana Price Faces Downside Risks

SOL price remained under bearish pressure today, June 19, with CoinMarketCap’s data showing that daily trading volumes had declined to $3.56. In the last seven days, the altcoin has faced intense volatility, oscillating from a weekly high of $160 and a weekly low of $140.

While SOL’s price weakness mirrors the trend across the entire altcoin market, it is facing further downside risk. Data from DeFiLlama shows that the Total Value Locked (TVL) on the Solana network sits at $8.34 billion, marking a notable decline from the January high of $1.98 billion.

The other sign of diminishing network growth is the plummeting market cap for stablecoins created on the blockchain. This metric has declined from $13 billion to $8.34 billion within six weeks.

In addition, the ongoing capital rotation from altcoins to Bitcoin is also creating a bearish Solana price forecast. This rotation is seen in the falling altcoin season index, which stands at 20, indicating that it is currently Bitcoin season and altcoins such as SOL are facing bearish pressure.

SOL Meme Coin Activity Dries Up

Meme coin activity on the SOL blockchain is dropping significantly, which is also derailing the price recovery despite increased odds of a spot Solana ETF approval. Data from CoinGecko shows that the total market cap of meme tokens created on the network has declined below $10 billion following significant losses.

In the last seven days, the top five meme coins on the network have shed an average of 10% of their value. Moreover, market interest is dwindling as none of these tokens have registered more than $300 million in trading volumes in the last 24 hours.

Solana meme coin launchpad PumpFun has also registered strong dips in decentralized exchange (DEX) volumes. Per DeFiLlama, the weekly DEX volumes on PumpFun launchpad reached $351 million, marking the lowest volumes since September 2024. This launchpad has played a key role in SOL’s price growth in the past, but with reduced usage, bearish implications on SOL may arise.

Nevertheless, despite the meme coin hype cooling off and increasing the downside risk facing the Solana price, institutional interest towards SOL is rising. Recently, SOL Strategies filed for a Nasdaq listing with a treasury of more than 420,000 SOL tokens.

In summary, Solana price is facing additional downside risk amid declining network activity. Moreover, reduced interest in meme coins created on the SOL network is also having a bearish impact on the price and may increase the downward pressure.