VanEck Evaluated Solana Wash Trading Claims! Explained the Factors Behind SOL’s Success!

A global investment manager VanEckin its last report Solanathe success of and SOL He evaluated the wash trading allegations in based memecoins.

What are the Factors Behind Solana’s Success?

Stating that Solana experienced high interaction and transaction volume due to its structural positive aspects, despite wash trading concerns. VanEck attributed Solana’s high transaction volume to its low transaction fees and high-speed transaction capabilities.

VanEck analysts also noted that they remain optimistic about Solana’s potential despite concerns about wash trading.

VanEck’s latest analysis shows that Solana trading volumes are higher in memecoins wash trading It came in response to speculation that it was inflated with . Many people argue that the transaction numbers are not real and raise concerns about SOL’s future potential.

However, VanEck analysts state that SOL is successful thanks to the SOL network’s low transaction fees and high transaction speed.

VanEck head of digital asset research Matthew SigelSolana’s popularity among speculative investors is due to its low transaction fees and high transaction speed, which keep users at a rate that other networks cannot match, he said.

“Solana’s unique structure and advantages encourage high trading activity, especially among speculative investors, which contributes to revenue growth.”

Approximately 14.2% of Solana’s revenue is derived from wash trading, the practice of artificially inflating trading volumes by repeatedly buying and selling the same asset, according to a VanEck analysis. Against this, Ethereum‘s estimated wash trading volume accounts for 2% of its revenue this year.

“Solana’s low transaction fees, approximately 1/10,000 of Ethereum, create a conducive environment for speculative trading.

While memecoin trading currently dominates Solana’s revenue, Solana’s solid fundamentals offer potential for use cases beyond memecoins. This can ensure income stability in the future.”

*This is not investment advice.