Memecoin fraud undermines community trust, causing Solana's on-chain user activity to drop by nearly 40% in February.

On February 21st, according to Cointelegraph, Memecoin fraud is eroding community trust, especially the Libra token incident, resulting in a significant decrease in Solana user engagement rate. The number of active addresses on the network fell to an average of 9.50 million per week in February, a decrease of nearly 40% from the 15.60 million active addresses in November 2024. As confidence in Solana wanes, millions of dollars worth of cryptocurrencies are being transferred from Solana to other blockchains, indicating that potential capital outflows could have a net positive impact on the long-term growth of blockchains.