- The presence of MEV bots on the Solana network grew significantly.
- Interest in NFTs fell, while overall sentiment fell.
Activity on the Solana in recent months [SOL] network has grown. This increase in activity can be partially attributed to the general interest in memecoins on the network.
MEV bots take over
However, much of this activity was driven by MEV bots. According to new data, Solana surpassed Ethereum in MEV which started flowing back to validators over the past two weeks.
MEV bots are software programs that scan blockchains for profitable opportunities related to ordering transactions. They can exploit things like arbitrage, where people buy low and sell high on different exchanges.
They are also responsible for front running, where these bots enter their trades before another user to manipulate prices and make profits.
Source:
While high MEV bot activity is a sign of a growing ecosystem, it does come with some problems. High MEV activity can negatively impact any user’s experience, leading to a decline in activity and sentiment around a protocol over time.
Active efforts are needed from the network to reduce this and make it a better experience for users.
Another factor that could impact sentiment around the Solana Network is interest in the NFT sector. Over the past month, trading volume for Solana NFTs was down significantly.
In combination with this, the total floor value for the Solana NFTs also decreased significantly.
Source: Solana Floor
Solana should attract more users to its NFTs to improve the overall health of the ecosystem.
A drop in sentiment
As for the token, it was noted that the price of SOL was down 4.64% over the past 24 hours. In combination with this, the social volume around the SOL token had also decreased.
The declining social volume indicated that the SOL token’s popularity has declined in recent weeks. Moreover, weighted sentiment around the token also fell.
Read Solana’s [SOL] Price forecast 2024-25
This suggested that the number of negative reactions surrounding SOL at the time of writing outweighed the positive ones.
The negative sentiment surrounding SOL could put downward pressure on SOL’s price in the future.
Source: Solana Floor