Bots Suspected in Solana’s Surge Over Ethereum, Claims Researcher Flip Research

cryptonews.com:

Solana has recently surpassed Ethereum in key metrics, including daily transactions and decentralized exchange (DEX) volumes.

However, a new report by the pseudonymous researcher Flip Research, published on July 30, suggests that much of Solana’s impressive performance may be driven by bot activity rather than genuine user engagement.

https://t.co/RAIZUwREKM

— Flip Research (@Flip_Research) July 30, 2024

On July 26, Solana recorded an average of 217 transactions per user across 1.3 million active addresses, a stark contrast to Ethereum’s fewer than three transactions per user across 376,300 active addresses.

Flip Research attributes this discrepancy to a high amount of miner extractable value (MEV) and wash trading on Solana.

The report critically examines the bullish narrative surrounding Solana ($SOL), suggesting that its perceived strengths might be misleading.

According to Blockworks Research, Solana’s total fees for the week of July 22 reached $25 million, surpassing Ethereum’s $21 million.

Additionally, Solana led the industry in 30-day DEX volume , with Raydium topping the list at $6.078 billion in trading volume, followed by Orca and Phoenix.

Despite high user numbers and transaction volumes, the report indicates an abnormally high transaction-to-user ratio, likely inflated by non-organic activities such as wash trading and rug pulls.

For instance, Solana reported 282.2 million transactions versus 1.3 million daily active users, translating to an improbable 217 daily transactions per user.

In comparison, Ethereum had 1.1 million transactions versus 376,300 users or approximately 2.92 transactions per user daily. This discrepancy points to potential manipulation within Solana’s ecosystem.

Solana’s