Solana Founders Embrace Memecoins, Claim AI Agents Are Overhyped

Solana Founders Weigh In on Memecoins, AI Agents, and MEV Concerns

The Solana ecosystem has been a hub of activity in recent times, with memecoins and AI agents gaining significant traction. However, according to survey data revealed on January 3, the founders of projects within this ecosystem have mixed opinions about these developments.

Memecoins: Mostly Good or Mostly Bad?

In a Blockworks Research survey of 42 founders on Solana, approximately 76% described memecoins as ‘mostly good.’ This is an interesting finding, given the recent surge in popularity of memecoins. The fact that a majority of Solana founders view memecoins favorably suggests that they are seen as a positive force within the ecosystem.

However, it’s worth noting that not everyone shares this opinion. A smaller group of 12% described memecoins as ‘mostly bad,’ indicating that there is still some skepticism about their long-term viability.

The Rise of AI Agents

AI agents have been gaining traction in recent times, with many founders viewing them as a potential game-changer for the Solana ecosystem. However, our survey suggests that not everyone shares this enthusiasm. In fact, 16% of respondents said that AI agents are ‘the most overrated Solana sector.’

This is an interesting finding, given the recent surge in popularity of AI agent tokens. It’s possible that some founders are skeptical about the long-term viability of these tokens or have concerns about their use cases.

Competing Options: Base, Coinbase’s Ethereum Layer 2, and Sui

If they couldn’t build on Solana, the founders surveyed said they would opt for either Base, Coinbase’s Ethereum layer 2, or Sui, a layer 1 competing with Solana. This suggests that there are still some doubts about Solana’s ability to scale and meet the needs of its users.

The Rise of Solana

Solana has been one of the top-performing cryptocurrencies in recent times, with its total value locked (TVL) surging from around $1.5 billion in January 2024 to nearly $8.5 billion by December. This is a remarkable increase and suggests that Solana is becoming increasingly attractive to investors.

The Role of Retail Traders

According to Grayscales, the rise of Solana has largely been driven by ‘retail traders increasingly enter[ing] the crypto market through Solana [as] speculation intensifies around Solana-based memecoins and AI agent tokens.’ This is an interesting finding, given that retail traders are often seen as a key driver of market trends.

The Growth of Memecoins

In 2024, the total market capitalization of memecoins increased from around $20 billion to more than $120 billion. This is a remarkable increase and suggests that memecoins are becoming increasingly popular with investors.

Solana’s Pump.fun has been a major driver of this growth, with its total volume surpassing $8.5 billion since launching in January 2024. It has periodically surpassed the Ethereum network in 24-hour revenue, highlighting the growing importance of Solana as a hub for memecoins and other decentralized finance (DeFi) applications.

The Rise of AI Agents

AI agents have also been gaining traction in recent times, with their aggregate market capitalization bootstrapped to approximately $16 billion. This is largely due to the fourth quarter of 2024, which saw a surge in popularity for these tokens.

Many of these tokens have gained significant attention on social media platform X, with some even surpassing the $100-million mark. However, as Condz, founder of Web3 startup Acolyte AI, noted in a December 29 post on X:

"’2025 will be massive for AI agents […] crypto AI agents can be a bubble if you look at just the narrative, where most are scams or will never deliver.’"

This is an interesting finding, given that many founders view AI agents as a potential game-changer for the Solana ecosystem.

The Mounting MEV Concerns

While some founders have expressed concerns about the long-term viability of memecoins and AI agents, others have raised concerns about the mounting maximum extractable value (MEV) problem. More than 20% of respondents identified MEV or sandwiching as ‘Solana’s biggest issue.’

This is an interesting finding, given that MEV has been a growing concern for Solana in recent times. Users pay validators tips to prioritize transactions during block building and to order certain transactions ahead of others within blocks. This helps users ensure transactions are properly executed but also contributes to higher transaction costs.

A Growing Concern

In 2024, Solana’s validators earned more from MEV than Ethereum’s for the first time. This coincided with transaction fees on the Solana network nearly tripling, according to data from Dune Analytics. This is a concerning trend that may impact the long-term viability of the Solana ecosystem.

Conclusion

The survey conducted by Blockworks Research has provided valuable insights into the opinions and concerns of founders within the Solana ecosystem. While many view memecoins favorably, others have expressed skepticism about their long-term viability. AI agents are also seen as a potential game-changer for the Solana ecosystem, but some founders remain skeptical.

The mounting MEV problem is another concern that may impact the long-term viability of the Solana ecosystem. As we move forward into 2025, it will be interesting to see how these trends continue to evolve and whether they have any significant impacts on the broader cryptocurrency market.

Sources

Blockworks Research
Grayscales
CoinGecko
Dune Analytics

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