Solana Network Struggles with Rising Transaction Failures Due to Trading Bots

Solana Network Struggles with Rising Transaction Failures Due to Trading Bots

Crypto News – Trading bots have been identified as a key factor behind the increasing rates of transaction failures on the Solana network.

Solana is diligently working to address its current challenges, particularly the growing number of failed transactions occurring on the network.

In a tweet dated April 4, Raj Gokal, co-founder of Solana, disclosed ongoing efforts to enhance the transaction experience for users. He emphasized the tireless work of world-class engineering teams, stating, “I am in constant communication with them, monitoring progress multiple times a day. They’ve assured me that this proactive approach significantly contributes to finding solutions.“

Anatoly Yakovenko, another co-founder of Solana, acknowledged the complexities involved in resolving congestion issues within the network. He expressed frustration, noting that addressing congestion bugs is more arduous than handling total liveness failures. While the latter involves identifying and patching a bug to resume normal chain operations, the former necessitates navigating through the entire release and testing process, making swift resolutions challenging.

Failed transactions have been on the rise in recent weeks, presenting a notable challenge for the otherwise high-performing Solana network. Data from Dune Analytics, compiled by Scarn_eth, reveals that over 70% of non-voting transactions since the beginning of the month have failed. This represents a significant increase from the approximately 54% failure rate observed around the same period last month.

Non-voting transactions, initiated by regular Solana users, have seen a surge in failures, while voting transactions, executed by validators securing the blockchain network through asset staking, remain unaffected.

This trend has led to widespread dissatisfaction among Solana users due to the deteriorating transaction quality and the growing number of failed transactions.

Mert Mumtaz, CEO of Helius Labs and a staunch advocate of Solana, attributes the spike in failed non-voting transactions to trading bots. He estimates that around 95% of these failures can be attributed to trading bots, as most user transactions are dropped before they reach the blockchain.

Mumtaz warns against overreliance on the failed transactions chart, noting that it does not accurately reflect the user experience, given that the majority of issues occur before transactions are confirmed on-chain. However, he emphasizes that addressing this issue would lead to a significant increase in current revenue numbers and throughput on the network.