Since March 2024, there has been a significant increase in failed transactions on the Solana network due to bot activities. In fact, over 75% of non-vote transactions on Solana have been unsuccessful, which is a record-high failure rate. This information is based on data from Dune Analytics, and it highlights a major challenge for Solana (SOL), a leading cryptocurrency known for its high transaction speed.
On April 5, the failure rate reached its peak, with over 77% of non-vote transactions on the Solana network failing. This surge in failed transactions coincides with the recent memecoin mania on Solana, which has generated a frenzy of activity. While some argue that the data is being misinterpreted, the fact remains that Solana users are facing degraded user experiences and frequent outages due to transaction failures.
This rise in failed transactions has caused uproar among Solana users on social media platforms, reflecting the growing frustration within the community. While not every Solana user is greatly affected by transaction failures, they do impact the overall performance of the network and lead to frequent outages.
Anatoly Yakovenko, the Co-Founder of Solana Labs, has acknowledged the challenges posed by these transaction failures. He stated that dealing with congestion bugs is more complex than total liveness failure, as it requires identifying and patching the bugs, which can disrupt the chain’s performance.
The increased usage of decentralized exchanges (DEX) on Solana, combined with the memecoin frenzy, has contributed to the rise in spam and failed transactions on the network. Despite a decrease in DEX volume since its peak in March, there is still ongoing interest in decentralized finance (DeFi) activities on Solana.
As a result of these challenges, Solana’s price has experienced a slight setback, dropping approximately 4% in the last 24 hours. This decline comes after a notable 33% rally over the past month. Consequently, Solana has slipped to become the fifth-largest cryptocurrency by market capitalization, according to CoinMarketCap data.
