- The launch made Solana the first L1 blockchain to adopt AI.
- The launch failed to lift SOL as it continued its losing streak.
The Solana [SOL] Foundation announced the integration of artificial intelligence (AI) in the Solana network through a recently launched ChatGPT plugin, marking a turning point in the confluence of AI and blockchain technology.
The launch made Solana the first layer-1 (L1) blockchain to adopt AI, according to details in a May 23 press release.
However, news of the innovative synergy failed to boost the native token SOL, which fell 2.39% in the 24-hour period to $19.40, according to CoinMarketCap facts.
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A paradigm shift
The new ChatGPT plugin, which was teased at the end of April, allows users to interact directly with the Solana network using the AI Chatbot. It can be used to buy NFTs, transfer tokens, analyze transactions, interpret public account data, and search NFT collections based on floor price. The plugin was available for download from GitHub, Solana Foundation added.
Solana co-founder CEO Anatoly Anatoly Yakovenko praised the launch and said the merger will open new doors of opportunity for Solana.
“AI will make Solana more usable and understandable. Crypto APIs are much better than the money handling APIs from finance-focused centralized service providers because they are reliable and don’t deal with the same issues that centralized providers face.
In addition, the foundation announced an increase in funding for its AI-focused grant program from the previously announced $1 million to $10 million. The grant program is designed to encourage developers to unlock new capabilities of Solana blockchain and AI convergence.
Solana leads in network activity
Solana remained the busiest blockchain in the ecosystem at the time of publication, processing more than 21 million transactions in the past 24 hours, according to data from Artemis.
Solana, for example, was head and shoulders above the other major networks, with the second best Tron [TRX] reporting less than half of the total transactions made on Solana.
Source: Artemis
SOL’s streak of losses continues
SOL was firmly in the grip of the bear, suffering weekly and monthly losses of 5.66% and 10.26% respectively. The continued downward trend eroded investor confidence in the token. Weighted sentiment trended in the negative region, apart from the peak in the period from May 13 to May 15.
Source: Sentiment
Read Solana’s [SOL] Price Forecast 2023-24
The bearish momentum affected SOL’s demand in the futures market as the number of positions aimed at price decline increased, according to data from Coinglass. The Longs/Shorts Ratio fell below one at the time of writing.
Source: Coinglass