Bitrabo Editorial
Following a surge in failed transactions on the Solana blockchain in April due to memecoin frenzy, concerns arose within the community regarding the network’s reliability. Marty Party, host of Crypto Traders Club Space, has delved into the issue to alleviate uncertainties among users.
Root of Most Solana Transaction Failures Linked to Error Code
In a recent post shared by Marty Party, insights were provided to clarify the issue of unsuccessful transactions on the Solana blockchain. The expert highlighted that these transaction failures stem from various factors like the network’s high throughput and intermittent congestion.
To dispel confusion, Marty Party explained that these failed transactions still incur fees but are executed by the runtime precisely as intended by the signer. The main reason behind these failures is often the transaction logic itself, with error code 0x1771, indicating excessive slippage, accounting for over 80% of unsuccessful transactions.
Despite the significant number of failed transactions, Party noted that merely 0.1% of active Solana addresses, specifically automated bots engaging in time-sensitive price arbitrage opportunities, contribute to 95% of these transactions.
Emphasizing the network’s resilience and ongoing enhancements to boost reliability and performance, Party encouraged users and investors not to be deterred by the failed transactions, attributing complaints to uninformed Fear, Uncertainty, and Doubt (FUD) spreaders.
Opportunity Identified to Buy SOL
Despite the challenges, analyst and trader Ali Martinez has identified a bullish signal for SOL, suggesting it may be an opportune time to invest in the cryptocurrency. Observing SOL’s price on a 4-hour timeframe, Martinez pointed out a potential bullish megaphone pattern amid recent price dips.
Considering the oversold Relative Strength Index (RSI) and the recent drop to the 61.8% Fibonacci level, Martinez believes the current situation presents a favorable buying opportunity for SOL. He outlined suggested stop-loss and take-profit positions for potential traders to consider.
While Solana has experienced a downward trend, declining by more than 9% to $160 in the past week, there has been an uptick in trading volume by nearly 15% over the past day, indicative of positive sentiment among investors.