Solana Sees 97% Drop in Network Activity as Institutional Investors Exit

Solana's network activity has plummeted by 97% since its peak in November 2024, as institutional investors exit the market. Despite this, retail investors continue to buy into the cryptocurrency, with many small wallets purchasing SOL between $0 and $1,000. This divergence in behavior is evident in on-chain data, which shows that mid-sized and institutional wallets have been steadily declining since last year.

According to crypto trader Ardi, buying pressure has been dominated by retail investors, who believe SOL remains undervalued despite the decline in network activity. However, institutional investors have begun to exit the market, with selling volume accelerating months before the October 10, 2024 drawdown.

Solana's revenue has collapsed fivefold year-over-year from $2.5 billion in 2024 to $500 million in 2025, with Ethereum generating $1.4 billion in revenue this year and outperforming Solana by 56% year-to-date. Investor Jas warned that SOL's future may depend less on memes and more on what follows them.