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The validators of Solana collect fees for $25 million thanks to the memecoin TRUMP and MELANIA

As reported by on-chain data, the validators of the Solana blockchain have seen their fees skyrocket in the days following the launch of the memecoins TRUMP and MELANIA.

The great interest of investors in the tokens of the new USA President and his wife has driven a thriving trading activity, which has resulted in an avalanche of requests to the network validators.

In total, these nodes, essential for processing chain transactions, have earned fees of over 25 million dollars.

Let’s see all the details below.

Record inflows thanks to the success of TRUMP and MELANIA: the validators of the Solana network earn 100,000 SOL in fees and tips

The success of the memecoin TRUMP and MELANIA, launched over the weekend by Donald Trump and the new first lady, has brought large fees to the validators of the Solana network.

These entities, which are responsible for validating and managing the transactions of the crypto network, have recorded a record inflow of over 100,000 SOL in recent days.

We are talking about a profit of approximately 25.8 million dollars between fees and tips, mainly due to the intense trading activity observed in the market.

A large number of users flocked to Solana’s DEX trying to grab a share of the two tokens before others, which arrived with great surprise on the crypto markets.

Consider that in the middle of the launch of MELANIA, Phantom Wallet went into bug as it was clogged with over 8 million requests per minute.

The peak of activity was observed on January 20, with the Solana validators receiving over 87,000 SOL in fee.

The surge in requests has led to 24.7 million bundles of transactions to ensure success. The bundles refer to collections of transactions that are grouped together and sent to the validators for processing. 

These can choose the ordering of transactions in each bundle, giving priority to users who offer higher tips.

Many people or bots have presented substantial tips, as there is a strong speculative interest in trying to reach TRUMP and MELANIA before other players.

Of the 4.5 million daily active users on Solana, 1.5 million were unique donors, demonstrating interest in the sniping token on platforms like Meteora and Orca.

Many dapps and infrastructures of the Solana network went down in an attempt to handle such a large flow of transactions.

Outlook of Solana network validators: fees ranging from 0% to 100%

Currently, the Solana blockchain has 1,407 different validators with each of them having its own fee rate ranging from 0% to 100%.

These nodes play a crucial role in maintaining the security and integrity of the network, being responsible for processing transactions and their validity.

Each validator presents an amount of SOL committed in stake, delegated by the various users who decide to rely on them for the management of operations.

Generally, the more validators participate, the more the Solana network becomes decentralized and resistant to censorship and fraud.

The most important players on this list are Helius, Galaxy, Binance staking, Coinbase 02, Ledger by Figment and Figment.

All together they hold a total stake equal to 16.97% of all SOL committed by the network of validators. The nominal staking APY is 7.30%.

Source: https://solanabeach.io/validators

The fees imposed by the validators, as mentioned, can vary significantly due to different reasons.

These entities have the possibility to choose a commission between 0% and 100%, following the strategy adopted.

The validators that offer a 0% commission aim to attract more stake, hoping to increase their margin once they have accumulated a sufficient number of delegations.

Usually, once a certain level is reached, some of them decide to increase the fees to cover operational costs and keep the network secure.

Those who instead set the fees at 100% usually do so to discourage users from delegating their coins, since they have already reached a certain goal.

In other cases, the reason is represented by the necessity to suspend operations for maintenance or updates.

Sometimes high fees might be associated with the need to cover costs in node management, such as unexpected expenses or infrastructural improvements.

Analysis of the memecoins TRUMP AND MELANIA: will they continue to be relevant in the eyes of investors?

Despite the memecoins TRUMP and MELANIA having triggered strong trading activity on Solana, generating large fees for validators, their interest might be declining.

The large gains recorded by the two coins in the hours following their launch were partially erased, creating uncertainty among crypto traders.

TRUMP has dropped by 45% from its all-time high, losing about 7 billion dollars in market capitalization.

MELANIA has instead seen its price drop by 70% from the highs, for a loss of almost 1.5 billion dollars in market capitalization.

If these collapses can generally be associated with a potential future recovery in more solid cryptocurrencies, here the data indicates the opposite.

The crypto entourage of Donald Trump that manages these memecoins holds large amounts of supply, ready to be sold as soon as it is unlocked.

Furthermore, the “pump and dump” scheme of the early days of listing could discourage new users from participating in the trading of the coins.

The way in which the operations were managed was not greatly appreciated by the crypto community.

Donald Trump himself did not mention the TRUMP currency during his inauguration speech at the White House.

Furthermore, it seems he is not really interested in his memecoin, as he publicly stated that he “doesn’t know much about it“.

Alessandro Adami
Alessandro Adami
Graduated in "Information, Media and Advertising", for over 4 years interested in the cryptocurrency and blockchain space. Co-Founder of Tokenparty, community active in spreading crypto-enthusiasm. Co-founder of Legal Hackers Civitanova marche. Information technology consultant. Ethereum Fan Boy and supporter of Chainlink oracles, strongly believes that smart contracts will be central in the development of society.
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