Exploring Solana’s memecoins scene: ATH volumes, unsuccessful transactions, & rug pulls

CoinGecko’s data shows Solana (SOL) as the blockchain of choice for 2024. That follows the latest meme coins-led bull run.

Nevertheless, the blockchain witnessed eye-catching triumphs and inherent issues, attracting judgment from critics.

While Solana’s trading volume remained elevated, around 80% of the transactions were unsuccessful.

Further, innocent investors looking to capitalize on the astronomical price surges lost millions on scams and rug pulls.

Solana’s trading volumes soar on meme token frenzy

The increased activity in the memecoin market propelled Solana’s trading volume, even outshining Ethereum. The blockchain’s DEC trading volume remained elevated over the past week as WIF, BONK, and BOME dominated trends.

🚨 BREAKING: @solana weekly DEX trading volume surpasses $20 billion. pic.twitter.com/ZjsAOn2Ict

— SolanaFloor | Powered by Step Finance (@SolanaFloor) March 22, 2024

An influx of failed transactions

While the blockchain saw magnified trade activity, 50% – 80% of the transactions were unsuccessful.

🚨#Solana is currently congested with an Average Ping Time of 20-40s, 30-50% Ping loss, up to 50-80% failed transactions. $SOL

Solana's TPS isn't 50k due to vote transactions; it's just marketing. In reality, under full network conditions with 30-50s wait times, Solana maxes out… pic.twitter.com/NJJfZGDBgo

— Dagnum P.I. (@Dagnum_PI) March 17, 2024

Crypto analyst Tom Wan revealed that bots accounted for 93% of the unsuccessful transactions, whereas 17% came from genuine users. He stated,

“New tokens have attracted bots to spam the network to capture potential opportunities. It has caused the network to experience a high number of failed transactions.”

Hiked transaction fees

Furthermore, transaction charges on the Solana ecosystem skyrocketed up to three times. The media fees increased to 0.000016SOL from 0.000005SOL, pushing the average transaction cost to $0.06580.

Failed transactions, increased costs, and network congestion negatively impact user activity within the Solana blockchain.

Rug pulls & scams dent user confidence

While bullish markets mean profitable opportunities, the latest seismic SOL-based memecoin rally saw get-rich-quick-oriented players suffering from fraud.

Blockchain investigator ZachXBT revealed multiple scam activities capitalizing on Solana’s memecoin wave.

I was interested to see how much SOL has been sent as a result of the presale meta and calculated >655,000 SOL ($122.5M) raised from 27 presales. pic.twitter.com/dvsW4TSoov

— ZachXBT (@zachxbt) March 19, 2024

The data shows fraudsters siphoned around 655K SOL coins, worth approximately $122.5 million from 27 ICOs.

While hunting for opportunities on Solana-based meme tokens, users should remain vigilant. Enthusiasts should stay alert and shield themselves from scam artists looking to exploit the frenzy.

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