[TL; DR]
On 6 April the Solana network had a 77% non-transaction failure rate.
The activity of arbitrage bots could be the reason for the network’s high transaction failure rate.
The market expects Bonk, Shiba Budz (BUDZ), Wen (WEN), Dogwifhat (WIF), Myro (MYRO), AnaloS (ANALOS) and Book of Meme (BOME) to perform highly in 2024
Introduction
Solana blockchain, well-known for its high throughput, scalability and low fees, has been grappling with network congestion for several weeks now. In fact, Solana has been experiencing outages since 2021 which is affecting its reputation. For example, some Solana based projects have delayed the launch of their crypto products due to the persistent congestion.
This analysis looks at the network problems the Solana blockchain is facing. In addition, we shall analyze the views of its co-founders and other industry leaders. Finally, we will uate how the memecoin season is impacting the performance of the Solana blockchain.
Transaction Failure Rate: Over 77% of Non-vote Transactions on Solana Fail
The Solana blockchain is struggling to process transactions as a result of the increase in network activity. Nonetheless, the co-founders and other leading personalities in the crypto sector have varying views of the causes of the network problems such as failed transactions and outages.
Apart from failed transactions and network outages the blockchain has been experiencing an increase in transaction delays and errors. Such a development has caused several projects such as Suit Up, DuckCoin and Surge Finance to postpone the launch of their products. As an example, DuckCoin posted the following information, confirming its delay to launch some of its crypto products.
Source: x.com
The above diagram includes the Solana blockchain failure rates for 6 April. As you note, the network had a 75% transaction failure rate. However, some transactions such as deposit and withdrawal functionalities were not affected by the congestion.
One of the major contributing factors to the Solana blockchain stress is the high level of activity on the network due to the current memecoin mania. The blockchain is experiencing a high demand for memecoins leading to a surge in transactions. Also, the prevailing bull market is contributing to the Solana performance issues.
Commenting on X, Eowyn Chen, Trust Wallet CEO, said, "I saw many user questions around Solana transactions are pending/failed. The bull market pressure test is still too real. 75% failure rate." Chen also added statistics that show the Solana transaction failure rate.
Solana Failed Non-Vote Transaction Share – Dune
As the above graph denotes, the Solana network experienced high failure rates between 5 March and 5 April. However, several analysts and Solana co-founders have different reasons for the current Solana challenges.
Read also: Comprehensive Analysis of the MEME Track in Ten Thousand Characters
Contrasting Views on Transaction Failures: Helius CEO Stance Attributing Failures to Bot Spam
In trying to explain the causes of the current Solana network congestion, several analysts have come up with conflicting reasons. For example, Mert Mumtaz, CEO of Helius, a staunch admirer of the Solana blockchain, thinks that Solana bot spam is the real cause of the Solana network congestion. BeInCrypto quotes Mumtaz as saying, "Almost all failed transactions you see on these charts are bot spam."
Through his X post Mumtaz explains how the arbitrage bots cause spams which lead to high Solana transaction failures. Basically, the Solana blockchain attracts many arbitrage bots due to its low transaction fees. As a result, the bots flood the network in their attempt to benefit from the discrepancies in prices of Solana based memecoins. Mumtaz, though, believes that the transaction failures do not affect the ordinary Solana network users.
Raj Gokal, one of the Solana co-founders, believes that the network congestion is a result of scalability issues. He thinks that the rapid network growth has resulted in a high demand for Solana products like memecoins and the Solana value market impact. Another leading crypto analyst, Andre Cronje, Fantom network creator, agrees with Gokal as he thinks that the network challenges are technical in nature. He aired his views on X as the next screenshot shows.
Source: x.com
The next person to air his views on the current meme coin transactions Solana and the network congestion is Anatoly Yakovenko, co-founder of Solana blockchain. Yakovenko said, "Dealing with congestion bugs sucks so much more than total liveness failure."
Primarily, Yakovenko thinks that there is need for time to solve the current Solana challenges. The solution can’t be implemented in a short time. To this effect he said, "The latter is one and done, bug is identified and patched and chain continues. The former has to go through the full release and test pipeline. Shipping fast is impossible."
Solana Market Dip amid Technical Challenges
The existing network challenges have resulted in a negative Solana market value impact. For example, during the last week of March the Solana price fell by 3% forcing it to revert to the fifth position on the global crypto market rankings. The next diagram shows Solana’s strong price dip since 1 April.
Solana Price Dip – CoinMarketCap
The graph indicates how Solana dropped sharply from $201.78 on 1 April to $147.35 on 13 April. In all, the Solana price has decreased by 25% within two weeks.
Recapping of Solana’s Historical Performance Issues, Including Outages in 2022 and 2023
As hinted above, the Solana blockchain stress has existed since 2021. The following table shows several severe network challenges the blockchain experienced during 2022 and 2023.
Best Solana Memecoins in 2024
The best Solana memecoins 2024 include Bonk, Shiba Budz (BUDZ), Wen (WEN), Dogwifhat (WIF), Myro (MYRO), AnaloS (ANALOS) and Book of Meme (BOME). Their past price movements and transaction volumes indicate their great potential on the market.
For example, between 14 and 16 March the price of BOME increased by 45,000%. Similarly, MYRO surged by 22,095.5% between 12 November 2023 and 1 March 2024. Compared to the other types of cryptocurrencies, memecoins have relatively high volatility. To illustrate, on 8 March the price of Shiba Budz rose by about 300%. Indicating their potential on the market.
Solana Price Prediction for 2024, 2025 and 2030
Several Solana price predictions indicate a bullish future for the cryptocurrency. For example, AMBCrypto predicts the price of Solana to fluctuate around $329.23 and $352.27 by the end of this year. Going into 2025 the Solana price is expected to increase as the next table shows.
Solana Price Prediction for 2024, 2025 and 2030 – AMBCrypto
As the table denotes, the price of the Solana crypto may reach $818.53 by 2025 and $25,296.27 by 2030. On the other hand, Coingape’s price prediction is more bullish than that of AMBCrypto as the next table shows.
Solana Price Prediction 2024, 2025 and 2030 – Coingape
As the table shows, Coingape forecasts that the Solana price may reach $4,825 by the end of 2024, $7,045.30 by 2025 and $42,364.76 by 2030. Its team of crypto analysts has come up with a very bullish Solana price prediction 2024 as it anticipates the coin’s value to fluctuate between $4,185.58 and $4,852.51.
Conclusion
The Solana blockchain has been experiencing network problems since 2021. During the previous months it had several outages and transaction failures. For example, on 6 April the network recorded a 77% non-transaction failure rate. Some analysts attribute such failures to the current memecoin mania. However, others believe that Solana bot spam is contributing much to that problem.
