Solana is suffering from congestion on the network. Congestion means the network is struggling to handle all of the transactions. As a result, transactions on Solana are delayed and some incur higher transaction fees.
These automated systems are trying to prioritize their trades over average users. The activity peaked when new meme coins launched on Solana.
source: solscan
This is not the first time Solana is suffering from congestion. SOL developers are working on patching the network, citing spa transactions are to blame. Due to the rise of meme coins on Solana, bot activity has increased.
The bots prioritize their trades over average users, which clogs the network.
However, despite the negative effect on the chain, SOL-based meme coins remain resilient. Dogwifhat and Myro who have already established their presence are clinging to their gains.
source: CMC
High demand Slothana’s Preasle
The demand for SOL-based meme coins is ongoing. A great example of this is Slothana. One would think that investors would flee from a chain that cannot finalize transactions promptly.
However, Slothana has raised $10M so far with more individuals joining the presale. It demonstrates that despite all, meme coins have a substantial market and high demand.
source: Slothana
Investors from traditional markets such as stocks and options may argue that meme coins are nothing but a trend that will eventually pass. The performance of past and present meme coins shows that this market is here to stay.
It is important to highlight that meme coins are prone to high volatility. Large price swings such as 20% and even 30% in less than 24 hours are common.
