Solana’s AI Venture Faces Challenges in Reviving SOL’s Troubles

The Solana [SOL] Foundation Integrates AI with Solana Network

The Solana Foundation has made an exciting announcement regarding the integration of artificial intelligence (AI) into the Solana network. This milestone is achieved through the launch of a ChatGPT plugin, marking a significant moment in the convergence of AI and blockchain technology.

According to a press release on May 23, Solana has become the first layer-1 (L1) blockchain to adopt AI, setting the stage for groundbreaking advancements in the field.

Despite this groundbreaking synergy, the native token SOL did not experience an immediate boost. In fact, CoinMarketCap data shows that SOL dropped 2.39% in the 24-hour period, reaching a value of $19.40.

A Paradigm Shift

The newly launched ChatGPT plugin, which was initially teased in late April, enables users to directly interact with the Solana network using an AI Chatbot. The plugin empowers users to perform various actions such as purchasing NFTs, transferring tokens, analyzing transactions, interpreting public account data, and searching NFT collections based on the floor price. The Solana Foundation has made the plugin available for download on GitHub.

Anatoly Yakovenko, the CEO and co-founder of Solana, expressed his enthusiasm about the launch and highlighted the potential it holds for the network.

“AI will make Solana more usable and understandable. Crypto APIs are way better than the APIs that deal with money from finance-focused centralized service providers because they are trustless and don’t deal with the same issues that centralized providers have to deal with.”

Furthermore, the foundation announced a significant increase in funding for its AI-focused grants program. The program’s funding has been raised from the initial $1 million to $10 million, aimed at encouraging developers to explore the possibilities of Solana blockchain and AI convergence.

Solana Leads in Network Activity

Even amidst the recent developments, Solana remains the most active blockchain in the ecosystem. Data from Artemis reveals that in the last 24 hours, Solana has processed over 21 million transactions, surpassing other major networks.

Tron [TRX], the second-best network in terms of transaction volume, reported less than half of the transactions processed by Solana.

SOL’s Losing Streak Continues

Unfortunately, SOL continues to experience a decline in value. It has recorded weekly and monthly losses of 5.66% and 10.26% respectively. This prolonged downtrend has affected investor confidence in the token. The weighted sentiment has remained predominantly negative, with the exception of a brief spike between May 13 and May 15.

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