Solana’s AI foray: Analyzing SOL’s response to the latest developments

Solana Witnesses Decline in Active Accounts

Solana, in the past 90 days, experienced a decline in the number of active accounts in terms of fee payers. A decrease in the number of fee payers directly affects a network’s revenue. However, Solana has made recent efforts to improve the blockchain, which can change the current scenario.

Solana Enters the AI Space

The Solana Foundation announced on April 26th, through a tweet, a $1 million fund for small-scale grants exploring the intersection of the Solana blockchain and AI. New and ongoing projects are eligible for the funds, which range from $5,000 to $25,000.

The program aims to drive new innovations related to AI technology, and help increase the capabilities and offerings of the Solana blockchain. To be eligible for a grant, the tool or app must be publicly available for others to use, open-sourced, and have source code available to the Foundation.

Solana Launches ChatGPT Plugin

As a part of the AI initiative, Solana Labs created an open-source reference implementation for a ChatGPT plugin. The newly developed plugin provides a unique capability to the Solana blockchain, as users can now search the blockchain using the AI chatbot.

Users can perform various tasks through the ChatGPT user interface, including checking wallet balances, transferring tokens, and purchasing NFTs, according to the official tweet. The launch of ChatGPT and AI technology on the Solana blockchain could generate a spike in interest in SOL and increase its TVL, which recently registered a decline.

Solana’s development activity increased over the last week, which can be attributed to the aforementioned efforts. SOL’s weighted sentiments also registered improvement. At the same time, the network’s social volume remained consistent, reflecting its popularity in the crypto space.

Open Interest Declining

After a massive drop in SOL’s price on April 27th, the token quickly recovered as its 24-hour price chart was only down marginally. At press time, SOL was trading at $21.91, with a market capitalization of more than $8.6 billion.

However, Solana’s demand in the derivatives market fell lately, as evident from the decline in its Binance and DyDx funding rates. According to Coinglass, SOL’s open interest also fell sharply over the last few days. A decline in open interest indicates that the market is liquidating. This suggests that the on-going price trend is coming to an end and that SOL could register gains in the coming days.