Solana, a public blockchain known for its high transaction speeds, is under scrutiny again. After challenges with reliability in recent years, analysts are now highlighting another problem.

Solana faces fresh transaction processing challenges

Moving on to X, one user he said the network has an alarmingly high transaction failure rate. The analyst added that this performance issue tends to significantly impact the user experience, undermining the network’s benefits, which are mainly focused on low gas fees and high scalability.

The release of transaction data from Jupiter, a DEX aggregator on Solana, paints a disturbing reality. The analyst noted that every 24 hours, only 35% of all published transactions go through. That means the majority, about 65%, are not processed.

The analyst further explained that the situation is even more grave as analyzed over the past month. On some days, the analyst noticed that the transaction failure rate can exceed 80%. At this rate and on those days, only two out of ten transactions published on Solana are confirmed.

The low transaction success rate comes despite Solana’s proponents pointing to its high transaction processing speed, which is far better than that of Ethereum and Bitcoin. If the success rate is any indication, the analyst said the statistic can be misleading because it includes all failed transactions.

For this reason, the higher TPS is false and merely overstates Solana’s on-chain performance. This position is due to the fact that Solana, in lithe of its high failure rate, considers failed transactions as successes, creating a false image of the platform’s capabilities.

Every time transactions fail, the user experience is negatively impacted because users have to pay fees for every transaction that is published. This essentially means that Solana is penalizing users for using the network.

Will interested financial institutions like Visa back out?

The situation is getting worse as Solana attracts bots that flood the network with low-fee transactions. This translates into a high failure rate for regular users who do not properly optimize their gas fees by paying more.

The analyst added that Solana’s high transaction failure rate could even cause major financial institutions like Visa to reassess their decision. If they decide to implement Solana, users accustomed to the reliability of conventional payment rails and high processing speeds may be hesitant to adopt the technology.

While the high failure rate indicates high demand, Solana has other issues. Recently, the Solana Foundation banned over 30 validators from its subsidy program, accusing them of enabling the Miner Extractable Value (MEV) bot.

Featured image from Canva, Chart from TradingView