Record-Setting Month
In July, Solana set several network records, surpassing Ethereum in fees and DEX trading volume. Moreover, active daily addresses reached 2.1 million, highlighting growing user engagement.
Industry Predictions
Based on these trends, some experts predict that Solana could surpass Ethereum by 2030, becoming the top smart contract blockchain. However, independent researcher Flip Research warns that Solana’s growth might be unstable, likening it to a “house of cards.”
Transaction Volume Discrepancy
A key difference between Solana and other networks is its high transactions per active user. Solana averages 217 transactions per day per user, while Ethereum averages 2.9, and Arbitrum 4.5.
DEX Activity Analysis
Raydium led Solana’s DEX weekly turnover in July, peaking at $8 billion. However, the platform suffers from low liquidity, with some pools holding under $100. This discrepancy raises concerns about the platform’s true market depth.
The Role of Bots
High network activity and trading volume on Solana are largely driven by bots inflating metrics. Thousands of meme tokens are pumped daily, often with celebrity endorsements. For instance, a report showed that in June, 30 tracked coins promoted by celebrities plummeted between 73% and 99%.
The Impact on Stablecoins
Similarly, bots dominate Solana’s stablecoin market, with VISA reporting that over 90% of trading volume is bot-driven. This high bot activity exposes network weaknesses and inflates performance metrics artificially.
Future Uncertainty
While bots stress-test Solana’s network, they also contribute to its inflated statistics, fueled by numerous fraudulent projects. A potential decline in user trust could see a drop in bot activity and a collapse of Solana’s metrics.
