Solana faces rising MEV bot activity: Should you be concerned? – AMBCrypto News

  • The presence of MEV bots on the Solana network has increased significantly.
  • Interest in NFTs has declined and overall sentiment has declined.

Activities at Solana over the past few months [SOL] Networks have proliferated. This surge in activity can be partially attributed to the overall interest in meme coins on the network.

MEV bot takes over

However, the majority of this activity was driven by MEV bots. According to new data, Solana has outperformed Ethereum in his MEV returning to validators over the past two weeks.

MEV bot is a software program that scans the blockchain for profitable opportunities related to transaction orders. They can exploit things like arbitrage to buy low and sell high on various exchanges.

They are also responsible for front-running, where these bots insert transactions before other users in order to manipulate prices and make profits.

Source: X

Although high MEV bot activity indicates a growing ecosystem, it comes with some challenges. High MEV activity can have a negative impact on the user experience and can reduce activity and sentiment about the protocol over time.

Reducing this requires active efforts on the part of the network to improve the user experience.

Another factor that could impact Solana Network sentiment is interest in the NFT sector. Solana NFT trading volume has dropped significantly over the last month.

Correspondingly, the total minimum price for Solana NFTs has also dropped significantly.

Source: Solana Floor

Solana needs to attract more users to NFTs to improve the overall health of the ecosystem.

decreased emotions

In terms of tokens, it was observed that the price of SOL declined by 4.64% in the past 24 hours. Correspondingly, the social volume surrounding the SOL token has also decreased.

The decline in social volume indicates that the popularity of the SOL token has waned over the past few weeks. Additionally, the weighted sentiment regarding the token has also declined.

read solana’s book [SOL] Price prediction for 2024-2025

This suggests that at the time of writing, the number of negative comments about SOL exceeded the number of positive comments.

Negative sentiment surrounding SOL could put downward pressure on SOL’s price in the future.

Source: Solana Floor

Next: Ripple market woes: Can XRP overcome its “zombie” status?