The founder of cryptocurrency fund CyberCapital has recently made a notable statement in the blockchain community by suggesting that Cardano ($ADA), Algorand ($ALGO) and similar alternative layer-1 blockchains should take inspiration from Solana ($SOL).
In a post on the microblogging platform X (formerly known as Twitter), CyberCapital founder Justin Bons contended that the criticism directed at Solana, particularly regarding its bot activity and low transaction fees which encourage arbitrage, is misplaced and argued bot activity should be encouraged, as should lowering transaction fees.
Bons argues that high bot activity should be seen as an indicator of network usage and that the economic model of a blockchain should welcome any activity that contributes to its utility, as long as it generates fees.
Per his words, there should be no discrimination between different types of activity “as long as the bots pay a fee,” as it’s “beneficial for the network.” He drew a comparison to the stock market, where bot activity is considered beneficial, to support his viewpoint.
Some, however, link high bot activity to network congestion and increased security vulnerabilities, as demonstrated by past issues in the Solana network. His words come at a time in which the Solana network is experiencing its 11th major outage.
Solana’s price is up over 300% over the past year as it recovered from the collapse of cryptocurrency exchange FTX, whose founder Sam Bankman-Fried was a staunch supporter of, leading the token and its ecosystem to be affected by association. Bankman-Fried was recently found guilty on counts of wire fraud and money laundering.
Solana’s ecosystem has been seeing growing adoption, with its Saga smartphone, which once faced sluggish sales, selling out last year over a lucrative 30 million BONK token airdrop for each new owner of the phone.
Meanwhile Cardano, according to a popular crypto analyst, has been in a pattern that mirrors its price behavior of late 2020, before the cryptocurrency entered a bull run that saw its price move to a $3 high.
Per the analyst, the pattern could see Cardano’s price run to the $8 mark in 2025 if it repeats itself amid a renewed cryptocurrency bull market.
Featured image via Unsplash.