tl;dr
Solana, a public blockchain known for high transaction speeds, is facing scrutiny due to alarmingly high transaction failure rates, impacting user experience and contradicting claims of low gas fees and high scalability. Data from a Solana-based DEX aggregator reveals that only 35% of transactions a...
Solana, a public blockchain known for high transaction speeds, is facing scrutiny due to alarmingly high transaction failure rates, impacting user experience and contradicting claims of low gas fees and high scalability. Data from a Solana-based DEX aggregator reveals that only 35% of transactions are processed daily, with some days experiencing a failure rate exceeding 80%. This challenges the platform's touted transaction processing speed superiority over Ethereum and Bitcoin. The high failure rate penalizes users with fees for unsuccessful transactions, potentially deterring interest from financial institutions like Visa. Additionally, Solana's issues with Miner Extractable Value (MEV) bot activity further compound its challenges.
Taking to X, one user said the network has alarmingly high transaction failure rates. This performance problem, the analyst added, tends to significantly impact user experience, watering down the network’s benefits, mostly centered on low gas fees and high scalability.
Sharing transaction data from Jupiter, a DEX aggregator on Solana, paints a worrying reality. For every 24 hours, only 35% of all transactions posted go through. This means that a majority, roughly 65%, are not processed. The analyst further expounded that the situation is even more severe, with some days experiencing a transaction failure rate exceeding 80%. At this rate, only two out of ten transactions posted on Solana are confirmed.
The low transaction success rate comes even though Solana supporters point to the high transaction processing speed, which is said to be superior to Ethereum and Bitcoin. However, the analyst argues that this statistic could be misleading since it considers all the failed transactions, inflating Solana’s on-chain performance.
Whenever transactions fail to go through, users must pay fees for every posted transaction, negatively impacting user experience. In essence, this means Solana penalizes users for using the network.
The situation worsens because Solana attracts bots that flood the network with low-fee transactions, leading to a high failure rate for regular users who fail to optimize their gas fees accordingly by paying more. The analyst added that Solana’s high transaction failure rate may even deter major financial institutions, like Visa, from deploying in Solana, as users accustomed to traditional payment rails’ reliability and high processing speeds may be hesitant to adopt the technology.
Though the high failure rate indicates high demand, Solana is plagued by other problems, including issues with Miner Extractable Value (MEV) bot activity, as the Solana Foundation recently banned over 30 validators from their subsidy program, accusing them of enabling MEV bot activity.
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