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Solana Founders Embrace Memecoins, Doubt AI Agents, Highlight MEV Concerns
A recent Blockworks Research survey of 42 founders in the Solana ecosystem reveals a strong embrace of memecoins, skepticism about AI agents, and growing concerns over maximum extractable value (MEV) issues.
Key Survey Findings
- Memecoins Viewed Positively:
- 76% of founders described memecoins as “mostly good.”
- Memecoins have been a major driver of retail participation and speculative trading on Solana, helping boost total value locked (TVL) to $8.5 billion by December 2024, up from $1.5 billion in January.
- Skepticism Toward AI Agents:
- 16% of respondents labeled AI agents as “the most overrated Solana sector.”
- Despite the skepticism, tokens tied to AI agents saw a $16 billion market capitalization in 2024, fueled by speculative activity in Q4.
- Alternative Blockchain Preferences:
- Founders indicated they would choose Base (Coinbase’s Ethereum layer 2) or Sui (a layer 1 competitor) if Solana wasn’t an option for building their projects.
Memecoins and AI: Market Drivers
Memecoins’ Explosive Growth:
- The market capitalization of memecoins rose from $20 billion to over $120 billion in 2024, according to CoinGecko.
- Solana’s Pump.fun, a memecoin trading platform, contributed significantly, with $8.5 billion in total volume and periods where its 24-hour revenue surpassed Ethereum.
AI Agent Tokens:
- AI-driven tokens, including Zerebro (ZEREBRO), Fartcoin (FART), and ai16z (AI16Z), achieved market capitalizations above $100 million.
- While AI agents have generated excitement, many founders and analysts, such as Condz, caution that most projects are scams or lack the capacity to deliver value.
Mounting MEV Concerns on Solana
The survey also highlighted MEV (Maximum Extractable Value) as a growing challenge for Solana:
- What is MEV?
- MEV allows users to pay validators tips to prioritize or reorder transactions during block creation, ensuring execution but contributing to higher transaction costs.
- Solana vs. Ethereum:
- In 2024, Solana’s validators earned more from MEV than Ethereum’s for the first time.
- This coincided with transaction fees on Solana tripling, as per Dune Analytics.
- Founder Concerns:
- Over 20% of survey participants identified MEV as Solana’s most pressing issue, with “sandwiching” strategies further impacting transaction fairness.
Solana’s Rapid Rise in 2024
Solana’s performance outpaced Ethereum by eight times in 2024, driven by the retail appeal of memecoins and AI tokens. Analysts, such as Grayscale, attribute the network’s success to intense speculative activity, which attracted new users and liquidity.
2025 Outlook
- Memecoins and AI Agents:
- Memecoins will likely remain a key driver of retail participation, while skepticism around AI agents could lead to consolidation or refinement in the sector.
- As speculative bubbles risk bursting, projects with clear utility and innovation will be better positioned to sustain growth.
- Addressing MEV Issues:
- Solana’s leadership may need to implement solutions to manage MEV-related concerns, such as protocol-level transaction optimizations to mitigate rising fees and improve transaction fairness.
- Solana’s Competitive Position:
- With founders expressing interest in alternatives like Base and Sui, maintaining developer loyalty will be crucial for Solana’s continued success.
By balancing innovation with addressing network challenges, 2025 could be a transformative year for the Solana ecosystem.
