Solana Founders Embrace Memecoins, Downplay Importance of AI Agents in Cryptocurrency Market, According to Recent Survey

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Memecoins Gain Widespread Acceptance in Solana Ecosystem

Founders of projects within the Solana ecosystem have expressed a generally positive sentiment towards memecoins, with approximately 76% describing them as "mostly good" in a recent survey conducted by Blockworks Research. This surge in popularity can be attributed to the significant growth of total value locked (TVL) on Solana in 2024, which rose from around $1.5 billion in January to nearly $8.5 billion by December, according to data from DefiLlama.

The Rise of Memecoins

Memecoins have become a driving force behind the growth of Solana’s ecosystem. In 2024, the total market capitalization of memecoins increased from around $20 billion to more than $120 billion, according to data from CoinGecko. The success of Pump.fun, a major driver of memecoin adoption on the platform, is particularly noteworthy, with its total volume surpassing $8.5 billion since launching in January.

AI Agents: A Mixed Bag for Solana Founders

On the other hand, AI agents have garnered more skepticism among Solana founders, with 16% labeling them as "the most overrated Solana sector" in the survey. While some experts predict that 2025 will be a significant year for AI agents, there are concerns about their potential to create bubbles if they fail to deliver on their promises.

The Risks of Artificial Intelligence Agents

AI agents have seen a surge in adoption, with many bootstrapping millions in market capitalization. However, this rapid growth has also raised red flags among some experts, who warn that these AI-driven tokens may be overhyped or even scams. Condz, founder of Web3 startup Acolyte AI, recently shared his concerns about the potential for crypto AI agents to create bubbles on social media platform X.

The Mounting MEV Problem

In addition to their views on memecoins and AI agents, Solana founders expressed concerns about the network’s mounting maximum extractable value (MEV) problem. A plurality of respondents (more than 20%) identified MEV or sandwiching as "Solana’s biggest issue."

What is Maximum Extractable Value (MEV)?

Maximum extractable value refers to the potential revenue generated by validators from the manipulation of on-chain transactions. In the Solana ecosystem, users often pay validators tips to prioritize their transactions during block building and order certain transactions ahead of others within blocks. While this can help ensure that transactions are executed correctly, it also contributes to higher transaction costs.

The Impact of MEV on Solana’s Transaction Fees

In 2024, Solana’s validators earned more from MEV than Ethereum’s for the first time, coinciding with a nearly threefold increase in transaction fees on the Solana network. According to data from Dune Analytics, this trend raises concerns about the long-term sustainability of Solana’s ecosystem.

Alternative Options for Founders

When asked which blockchain they would choose if they couldn’t build on Solana, approximately 42% of founders opted for either Base or Coinbase’s Ethereum layer 2. A smaller percentage (around 6%) chose to build on Sui, a layer 1 competing with Solana.

Conclusion

The survey conducted by Blockworks Research highlights the complexities and challenges faced by the Solana ecosystem. While memecoins have gained widespread acceptance among founders, there are concerns about AI agents and the mounting MEV problem. As the landscape continues to evolve, it remains essential for projects within the Solana ecosystem to address these issues and adapt to changing market conditions.