- Solana’s transaction fees hit 53,800 SOL, the lowest since September 2024, reflecting a significant drop in network activity and user engagement.
- Validators are set to vote on proposals that could impact staking rewards and inflation, potentially reshaping the network’s economic structure.
The Solana network’s transaction fees have dropped to their lowest level since September 2024. Just 53,800 SOL were created from transaction fees in the past week—a far smaller amount than at the start of the year.
Actually, the network had made up to 361,000 SOL in a single week in January 2025, mostly due to the frenzy of meme coins like TRUMP and MELANIA drawing market attention.
User Activity on Solana Faces a Sharp Decline
Still, this tendency is about more than just transaction fees. Looking further, the average 7-day count of active addresses on the network has dropped by 35% recently.
Platforms including Jito, Magic Eden, and Save have also suffered; in the last 30 days, active users dropped 56%, 38%, and 42%, respectively. This phenomenon reveals that, following initial warmth at the beginning of the year, user excitement for the Solana ecosystem is beginning to wane.
It doesn’t stop there, the income earned by validators through transaction tips on Jito has also dropped. Validators could take around $62,000 daily at its height when the meme coin set off a frenzy in activity. That number has plummeted drastically now to just over $11,300 daily.
Validators to Vote on Staking and Inflation Adjustments
Solana validators are presently getting ready to vote on two proposals that can alter the tokenomics structure of the network among the slow network activity. SIMD 0123 is the first proposal meant to move transaction priority fees to validator stakers, hence boosting staking incentives and improving on-chain transaction execution.
Stated differently, SOL holders who engage in staking stand to benefit more should this mechanism be put into use.
The second proposal, SIMD 0228, suggests changing the SOL inflation rate depending on the staking degree of involvement. Should this measure be carried out, it could lower staker selling pressure and lessen token dilution levels.
The CNF had reported that the plan would bring Solana inflation down to less than 1%, therefore generating a token shortage that might assist in network economy stabilization. Measure supporters hope that the action will increase SOL’s long-term value.
Critics caution, nevertheless, that the mechanism’s influence is not entirely foreseeable and may cause staking returns to be unstable.
SOL’s price has also fallen among these developments. As of press time, SOL was swapped hands at about $123.15, corrected 3.82% over the last 24 hours and down 9.81% over the last 30 days.
Since market sentiment has not completely recovered, SOL’s price will not be easy to recover, particularly with network activity being much below expectations.
