- 1.26% of Solana addresses contribute 95% of total fees
- Market makers and bots dominate fee generation
- Concerns rise over manipulation tactics like sandwich attacks
- Solana’s long-term decentralization is under scrutiny
Solana’s (SOL) transaction fee model is raising eyebrows. According to The DeFi Report, just 1.26% of all Solana wallet addresses have contributed to a staggering 95% of total fees in the past month.
This concentration has led to growing concerns about decentralization and sustainability. While Solana’s low fees and high-speed transactions have made it popular, the data suggests that most of its network fees come from a small group of players—mainly market-making firms and bots.
DefiLlama reports that Solana generated $89.73 million in fees in February, compared to Ethereum’s $46.28 million. However, analysts warn that these numbers don’t tell the full story.
I continue to see misleading analysis about "Solana fees outpacing Ethereum"
— Michael Nadeau | The DeFi Report (@JustDeauIt) March 6, 2025
Don't get me wrong. The Solana growth arc is impressive.
But if you look under the hood, it looks like a house of cards.
Case & point:
Over the last 30 days, 95% of Solana's total fees (base +… pic.twitter.com/U2RmNi9FTF
Michael Nadeau, founder of The DeFi Report, suggests that Solana’s growth may not be as organic as it seems. Unlike Ethereum, where 17.31% of addresses generated 95% of fees, Solana’s figure is significantly smaller at just 1.26%.
“If you look under the hood, it looks like a house of cards,” Nadeau wrote.
This raises an important question: Is Solana truly decentralized, or is it controlled by a handful of key players?
Bots and Market Makers Are Driving Solana’s Activity
One of the key contributors to Solana’s fee generation is Wintermute, a well-known market-making firm. Along with various trading bots, Wintermute is responsible for much of Solana’s network activity, including controversial trading tactics like sandwich attacks.
A sandwich attack is a form of front-running where bots exploit large trades. They buy an asset right before a large transaction is executed and then sell it immediately after, making a profit at the expense of retail traders.
Solana doesn't have a future, its a ponzi scheme designed for grifting.
— Chris | Crypto Assessor (@Crypto_Assessor) March 6, 2025
When the industry matures and free market forces truly come into effect, Solana will be one of the losers
This practice has led to concerns that Solana’s transaction volume is being artificially inflated rather than driven by genuine user demand. Many analysts believe that if retail traders become fully aware of the extent of bot-driven manipulation, they could start pulling out of the ecosystem—potentially harming Solana’s long-term revenue model.
“Nothing against Solana. Massive comeback story. But my sense tells me another period of ‘chewing glass’ is yet to come,” Nadeau warned.
Solana is a complete house of cards built on wash trading bots and centralized control. The validators make money on the failed transactions, too. It's the one chain that shouldn't be propped up by being a reserve asset. It's harmed the space and diluted it with meme spam. pic.twitter.com/FTrthQfglO
— Ed n' Stuff (@EdnStuff) March 7, 2025
Crypto experts are divided on Solana’s future. Some argue that Solana’s reliance on centralized actors and automated trading bots puts it at risk of long-term failure.
“When 95% of fees come from 1.26% of users, it’s less ‘decentralized finance’ and more ‘exclusive finance,’” said Superchargd, a crypto analyst on X.
Meanwhile, critics claim that Solana’s structure is unsustainable and could collapse under real market pressure.
“Solana doesn’t have a future; it’s a Ponzi scheme designed for grifting,” another user commented.
Can't believe you are even doing this comparison.
— Kira Sama (@Kira_sama) March 5, 2025
It's like comparing Ethereum versus las Vegas casino.
Yea vegas has more chips.
Interestingly, this debate comes just as Franklin Templeton, a major financial institution, predicted that Solana’s DeFi ecosystem could rival or even surpass Ethereum’s market valuation. The firm highlighted Solana’s scalability, low fees, and increasing user adoption as major strengths.
However, with growing criticism over fee concentration, Solana faces a critical moment. Will it adjust its fee structure to encourage a broader base of users, or will it continue relying on high-frequency traders and bots? The answer could determine whether Solana remains a top blockchain or faces a major reckoning.
