- Since March 2024, Solana has seen a sharp rise in failed transactions due to bot activities.
- Over 75% of non-vote transactions on Solana failed, a record-high failure rate.
According to data from Dune Analytics, Solana (SOL), one of the leading cryptocurrencies known for its high throughput, is facing a significant challenge as nearly three-quarters of its transactions have been failing since March 2024. On April 5 alone, over 77% of non-vote transactions on the Solana network failed, marking the highest failure rate on record.
This surge in failed transactions comes amidst a frenzy of activity driven by the recent memecoin mania on Solana. While proponents argue that the data is being misinterpreted, the reality remains that Solana users are experiencing degraded user experiences and regular outages due to transaction failures.
Will it Affect Solana Users?
The rise in failed transactions has sparked an uproar among Solana users on social media platforms, highlighting the growing frustration within the community. However, transaction failures are not a big concern for every Solana user. But it would impact chain performance and lead to frequent outages.
Anatoly Yakovenko, Co-Founder of Solana Labs, acknowledged the challenges, stating that dealing with congestion bugs is more cumbersome than total liveness failure, as it requires identifying and patching bugs, which can disrupt the chain’s performance.
The increased usage of DEX on Solana, coupled with the memecoin frenzy, has contributed to the rise in spam and failed transactions on the network. Despite experiencing a drop in DEX volume from its peak in March, the recent uptick indicates continued interest in DeFi activities on Solana.
Solana’s price has experienced a slight setback in response to these challenges, falling approximately 4% in the last 24 hours. This decline comes after a notable 33% rally over the past month. As a result, Solana has slipped to become the fifth-largest cryptocurrency by market capitalization, according to CoinMarketCap data.
