- The presence of MEV bots on the Solana network grew substantially.
- Interest in NFTs fell while overall sentiment declined.
In recent months, activity in the solana [SOL] The network has increased. This increase in activity could be partly attributed to general interest in memecoins on the web.
MEV robots take control
However, much of this activity was driven by MEV robots. According to new data, Solana has outperformed Ethereum in MEV and returned 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, which is buying low and selling high on different exchanges.
They are also responsible for frontrunning, which is when these bots insert their trades before another user to manipulate prices and make profits.
Although the high activity of MEV bots is a sign of a growing ecosystem, it comes with some problems. High MEV activity can negatively impact any user’s experience, which can cause a decrease in activity and perception around a protocol over time.
Active efforts would be needed on the part of the network to reduce this and make it a better experience for users.
Another factor that could affect sentiment around the Solana network would be interest in its NFT sector. Over the past month, Solana’s NFT trading volume had decreased significantly.
Along with that, the total minimum value of Solana NFTs also decreased significantly.
Solana would need to attract more users to its NFTs to improve the overall health of the ecosystem.
A decrease in feeling
As for the token, the price of SOL was observed to have fallen by 4.64% in the last 24 hours. Along with that, the social volume around the SOL token had also decreased.
The drop in social volume indicated that the popularity of the SOL token declined in recent weeks. Furthermore, the weighted sentiment around the token also fell.
Read Solana [SOL] Price prediction 2024-25
This suggested that the number of negative comments on SOL had outnumbered the positive ones at the time of writing.
The negative sentiment around SOL could put downward pressure on SOL price in the future.
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This is an automatic translation of our English version.
