Dispread Research “The recent surge in Solana, the reason is”

The consulting firm Dispread's research team 'Dispread Research' announced on the 4th that it had released a report analyzing the reasons for the recent surge in Solana (SOL) prices.

This report analyzed the reliability of ai16z, which received a lot of attention in the AI-based event project sector based on Solana, and the controversy surrounding the live streaming feature of the Solana-based bulk coin launch platform Pump.fun, which triggered the surge in Solana's on-chain indicators (such as trading volume, etc.).

According to the report, Solana's on-chain indicators have grown explosively due to the rapid rise of bulk coins launched with Pump.fun and the sudden emergence of bulk coins related to the AI-based event bulk coin GOAT that started last October.

However, the AI-based event project ai16z was manipulated by the Solana whale. ai16z is a project representing the venture capital (VC) a16z, and like VC's Andreessen Horowitz, AI-based event projects evaluate and execute initial imaginary assets and provide services.

ai16z was mentioned by a16z's CEO Marc Andreessen on X, receiving a lot of attention, but due to concerns about the possibility of additional launches by the team, the price of the self-token rose significantly. In fact, on October 27th, at 6 PM, the total market cap of ai16z's self-token AI16Z dropped by 50% in just about 4 hours.

The team did not provide any official explanation about this, but the founder Shaw was seen working hard on coding for live project development on Discord. As a result of restoring community trust, ai16z rose steadily for 20 days, and as of November 18th, the total market cap rose to 500 million dollars (approximately 702 billion won).

Then, on November 19th, during the token launch process of Eliza, developer Logan's internal trading status was detected, and ai16z plummeted by 80% in just a few days. This also had a negative impact on other Solana-based AI-based bulk coins.

What the research team pointed out as another factor was the suspension of Pump.fun's streaming service. Pump.fun's live streaming feature, which was launched last June, was used for illegal activities, leading to a sudden rise in self-token prices as some bulk coin launchers attracted public attention and used it as a means to inflate self-token prices. However, the team did not present any guidelines or operational measures. This led to a decline in trust in Pump.fun. Eventually, Pump.fun suspended its services, and the Pump.fun-based bulk coin market was criticized for overheating.

On the other hand, the AI-based event service that was activated in Solana saw the opposite effect. During the same period, in the base, AI-based bulk coins such as VIRTUAL, aiXBT, and CLANKER were launched, and from November 22nd to 28th, the net asset inflow of the base network was 2.5 billion dollars (approximately 3.158 trillion won), three times higher than Solana's net asset inflow.

Kim Byung-jun, a researcher at Dispread, said, “Although the mobility movement is being observed in the base from Solana, when looking at the activity of decentralized exchanges (DEX), the Solana ecosystem still maintains a lead of 1.5 times or more compared to the base ecosystem,” adding, “In the future, it is necessary to pay attention to how each network will differentiate itself in the competition structure between Solana and the base network to attract user participation.”