Solana has grown to become one of the most used protocols in the crypto space, more than transactions done in 2024 alone, but according to project founders on the network, the biggest issue on the network is MEV.
The network’s low fee has made it attractive for developers to deploy projects as well as users to transact with low fees. This also implies that more validators are being added to validate transactions leading to MEV.
MEV, or Maximum Extractable Value, refers to the extra profit that can be made by reordering, including, or excluding transactions in a blockchain block. It’s like a miner or validator (the entities responsible for organizing transactions into blocks) finding opportunities to maximize their earnings by tweaking the sequence of transactions before adding them to the blockchain.
For example, if a user is about to make a big purchase on a decentralized exchange (DEX), a validator might notice this and insert their own transaction ahead of it. This way, they buy the asset at a lower price and sell it immediately after the large purchase causes the price to rise, making a quick profit.
This practice is called “front-running.” Similarly, validators can use other techniques, like canceling or “sandwiching” transactions, to earn extra money.
While MEV can generate more income for validators, it has its downsides. It can lead to higher transaction costs for regular users, slow down the system, or even make certain decentralized applications less effective. Because of this, founders have voted MEV as the top issue for the Solana ecosystem.
Other challenges mentioned by the founders include congestion, memecoin activities, competing chains, developer experience, scaling speed, cabal, and others.
Memecoins good for Solana
While MEV is a major concern for founders, 70% of founders interviewed indicated memecoins are good for the network. They believe that memecoins have been a positive driver for the development of Solana. About 14% voted against memecoins while the others remained neutral.
Because transactions on Solana are low-cost and fast, developers find it easier to create and trade memecoins without high fees. This accessibility has led to a growing number of memecoins that are launched on Solana.
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These coins often start with a funny or catchy theme, like referencing a famous internet meme or cultural trend. For example, some Solana memecoins might be inspired by dogs, cats, or other quirky characters.
Users are drawn to these coins because of their humor, potential for quick profits, and the vibrant communities that form around them. However, memecoins are usually highly speculative and risky. Their value is often driven by hype rather than practical use, meaning their prices can rise or fall quickly.
Despite being seen as “just for fun,” memecoins on Solana can sometimes serve as a gateway for newcomers to explore the blockchain market. They bring attention to Solana and introduce people to how its ecosystem works.
Some of the most popular memecoins launched on Solana include $WEN, $MYRO, $BONK, $PONKE, and a lot of celebrity memecoins that gained attention in 2024.
