Solana Founders Express Concerns Over MEV and Explore Alternatives to Base and Sui Amid Growing Memecoin Interest

• Recent developments in the Solana network have brought significant attention to the role of memecoins and the pressing issue of maximum extractable value (MEV).

• As Solana’s ecosystem continues to evolve, the perception of memecoins has shifted among its founders, with many viewing them as beneficial despite existing challenges.

• “If we couldn’t build on Solana, we would resort to either Base or Sui,” noted a Solana founder in a recent survey revealing their stance on the current landscape.

This article explores Solana’s evolving landscape, focusing on founder sentiments towards memecoins, the AI sector, and the challenges posed by MEV.

Solana’s Landscape: Memecoins and AI Gather Momentum

The Solana network has recently witnessed an uptick in activity, attributed primarily to the rising popularity of memecoins and the integration of AI technologies. A survey conducted by Blockworks Research involving 42 Solana founders highlights that approximately 76% perceive memecoins as “mostly good,” underscoring their growing acceptance within the community.

Retail Interest Fuels Growth in Memecoins and AI Tokens

In 2024, Solana’s total value locked (TVL) rose dramatically, from around $1.5 billion in January to nearly $8.5 billion by December, signaling a robust influx of capital. Grayscale attributes this surge to retail traders flocking to Solana, driven by speculation surrounding memecoins and new AI agent tokens. The total market capitalization of memecoins skyrocketed from around $20 billion to over $120 billion, reflecting a tangible trend in investor behavior.

Token platforms like Pump.fun have played a crucial role in this narrative, facilitating massive trading volumes and attracting attention away from competitors such as Ethereum. Furthermore, the emergence of AI agents has also contributed significantly, with a collective market cap nearing $16 billion in 2024, especially in the fourth quarter.

Addressing the MEV Crisis

Despite these positive developments, concerns around Maximum Extractable Value (MEV) remain a critical issue for the ecosystem. According to the same survey, more than 20% of Solana founders highlight MEV as the network’s most pressing problem. This concern is compounded by the fact that users are incentivizing validators with tips to prioritize certain transactions, leading to increased transaction costs.

For the first time, data from Dune Analytics indicates that validators on Solana surpassed Ethereum in earnings from MEV, a notable shift that coincided with a near tripling of transaction fees on the Solana network.

The Future of Solana and the Broader Ecosystem

The Solana community is at a crucial juncture, with the dual themes of memecoins and AI playing significant roles in its evolution. The optimism for AI agents contrasts with the caution expressed by industry insiders, emphasizing the need for vigilance against potential market bubbles. “While 2025 may present vast opportunities for AI agents, many projects currently flooding the market could suffer from overhype and potentially prove to be scams,” warned Condz, founder of the Web3 startup Acolyte AI.

Conclusion

In summary, Solana’s ecosystem showcases a dynamic intersection of innovation and challenge. With the rising popularity of memecoins and the integration of AI, the landscape is evolving rapidly. However, growing concerns surrounding MEV pose significant challenges that need to be addressed to ensure sustainable growth. The upcoming year will be pivotal for Solana as it navigates these complexities while striving to maintain its competitive edge in the ever-evolving crypto landscape.