Solana at Risk? Growing Memecoin Dominance and Legal Woes Raise Red Flags
$SOL once considered a strong competitor in the blockchain space, is now under increasing scrutiny. As of July 28, 2025, SOL is priced around $192, but some analysts and investors are warning of a potential collapse in the next 12 to 14 months — possibly dropping the price below $30, a decline of over 80%.
One of the main concerns is the current state of the Solana ecosystem, which has become heavily saturated with meme coins. In fact, more than 50% of the trading volume on Solana is now driven by these tokens, most of which offer no real-world use cases. Popular meme coins like $BONK , WIF, Popcat, Pengu, $FARTCoin, $TRUMP , and Useless Coin dominate the network. These coins are widely believed to be overhyped and manipulated by a few large wallets — often referred to as “cabal wallets” — that pump the price before dumping it on unsuspecting investors.
Adding to the ecosystem’s troubles is a serious legal issue. An amended class-action lawsuit has been filed in the Southern District of New York, accusing Pump fun, a Solana-based memecoin launchpad, of operating a deceptive scheme similar to a rigged slot machine. The lawsuit claims over $5.5 billion were extracted from users through these pump-and-dump tactics.
The complaint also names Solana Labs and Jito Labs, alleging they supported and profited from the scam by monetizing blockchain activity and SOL price appreciation. The filing states:
“Solana Labs and the Solana Foundation provided the venue — the Solana blockchain itself — and monetized each wager through the sale of block space, validator fees, and SOL token appreciation.”
With legal challenges, declining innovation, and an increasing focus on short-term meme speculation, Solana’s future appears uncertain. Unless the ecosystem shifts back toward real utility and technological progress, many fear Solana may be heading for a sharp decline. Investors are advised to remain cautious and watch developments closely.
