Chain reaction after the burst of the meme coin bubble: trading bots' income big dump, GMGN on the brink of collapse?

The Solana network is facing unprecedented challenges, with the rapid decline of the meme coin craze plunging the entire ecosystem into a slump. Encryption KOL Pickle Cat recently warned that the popular on-chain trading tool GMGN may face collapse due to high operating costs and user attrition. Now facing a bubble burst, can Solana and major Tg Bots survive the crisis?

Solana network revenue crashes 93%: Impact of meme coin bubble burst

DefiLlama data shows that the weekly income of Solana blockchain plummeted by 93% from its peak of $55.3 million in mid-January to only $4 million last week, returning to the level of September last year. At the same time, the weekly income of decentralized application (DApp) also plummeted from $238 million to $32 million, a drop of 86%.

The total value of locked positions (TVL) dropped from $12 billion in January to $6.4 billion, close to halving. VanEck's report shows that 80% of Solana's revenue in recent months comes from meme coin trading, with Pump.fun's daily revenue plummeting from $15 million to $800,000.

The fuse of this market crash can be traced back to January, when U.S. President Trump launched the TRUMP and MELANIA proxy coins, draining market liquidity. With the rapid surge in the prices of the two proxy coins, the overall market value of meme coins shrank from $137 billion in December last year to $44 billion, a 68% drop.

(Trump's encryption hegemony: from meme coin speculation to strategic reserves, a national-level wealth harvesting plan)

GMGN Crisis: The burn rate model is unsustainable, with KOL costs becoming the biggest burden.

encryption KOL @0xPickleCati claims that GMGN is facing financial difficulties, mainly due to high operating costs and shrinking user base. He revealed that GMGN pays ordinary KOLs $10,000 per month, while premium KOLs receive up to $50,000, with contracts lasting a year, far exceeding the market prices of centralized exchanges (CEX).

Guys, I think GMGN is on the brink of collapse.

If u got assets there, u should pull them out.

They’re paying KOLs $10K (normal KOLs) to $50K (big KOLs) PER MONTH on one-year contracts.

That’s 10x more than ANY CEXs (hundreds to max ~$5k USD).

Meanwhile, on-chain activity IS… pic.twitter.com/wO5SSxwg4P

— Pickle Cat (@0xPickleCati) March 11, 2025

@0xPickleCati frankly, as the meme coin craze subsides, on-chain transaction activity has significantly decreased, and GMGN's revenue can no longer support such high expenses:

The cost of GMGN is explosively increasing, while user interest is declining, how long can they burn money?

In addition, he pointed out that GMGN forced KOL to sign exclusive contracts, prohibiting the promotion of other decentralized trading products. However, the exchange attracts KOL to promote its platform and then turns to decentralized wallets, which GMGN cannot compete with.

Even though GMGN has accumulated a substantial cash flow during the meme coin craze, he still predicts, "If the market continues to be sluggish, GMGN's funds can only support for another six months at most."

Trading bot revenue plummets: Solana on-chain activity stagnates

Data provided by Dune analyst @Adam_Tehc further confirms the dilemma of the Solana ecosystem, pointing out that the revenue of several mainstream trading robots has plummeted by more than 90% since its peak:

Photon: $5.96 million → $29.3 thousand (-95.1%)

BullX: $3.26 million → $298,000 (-90.9%)

Trojan: $2.81 million → $15.1 thousand (-94.6%)

GMGN: $2.34 million → $0.13 million (-94.4%)

BonkBot: $158,000 → $39,000 (-97.5%)

In addition, the meme coin launch platform Pump.fun has also been severely hit, with daily revenue plummeting from $5.44 million to $117,000, a 97.8% drop. These figures indicate that Solana's on-chain transaction activity has almost come to a standstill, and the survival of many Tg Bots is in jeopardy.

Can GMGN and Solana survive the winter?

@0xPickleCati believes that the collapse of GMGN is only a matter of time unless on-chain transaction activity miraculously rebounds, but on the other hand, he still appreciates its technology and user experience.

I appreciate the team and their responsive attitude, but no one in this market can bear such costs, they will soon be unable to cover them.

Qarax Community replied: "Meme coin products are double-edged swords, fun during the hype, but it's a matter of who can laugh last during the crash."

For the Solana ecosystem, the burst of the meme coin bubble has exposed the network's high dependence on speculative trading products. With a significant drop in revenue, the market is starting to focus on whether Solana can chart a new course to revive its fortunes.

From the burning crisis of GMGN to the sharp drop in revenue on the Solana network, the bursting of the meme coin bubble is triggering an ecosystem-level chain reaction, undoubtedly putting tremendous pressure on the operation of each project. If the market fails to recover quickly, they may not escape the fate of collapse.

The chain reaction after the burst of the meme coin bubble: trading bot income plummets, GMGN on the brink of collapse? Originally appeared on Chain News ABMedia.