Solana enters the AI space, but how has SOL reacted to the news
- The Solana Foundation announced a $1 million fund for AI and launched a ChatGPT plugin.
- SOL’s development activity increased while its open interest registered a decline.
Solana [SOL] witnessed a decline in the number of active accounts in terms of fee payers over the past 90 days. A decline in the number of fee payers directly affects a network’s revenue. However, Solana made a few efforts recently to improve the blockchain, which can help change the current scenario.
Read Solana’s [SOL] Price Prediction 2023-24
Solana enters the AI space
In a 26 April tweet, the Solana Foundation announced a $1 million fund for small-scale grants exploring the intersection of the Solana blockchain and AI. Both new and ongoing projects are eligible for the funds, which range from $5,000 to $25,000.
1/ Today, the Solana Foundation announces a $1m fund for small-scale grants exploring the intersection of the @Solana blockchain and AI.
The grants range from $5k to $25k, and both new and existing projects are eligible.
Learn more ?
— Solana Foundation (@SolanaFndn) April 25, 2023
The program will drive new innovations related to AI technology and, in turn, 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 will provide a unique capability to the Solana blockchain, as users will now be able to search the blockchain using the AI chatbot.
As per the official tweet, users will also be able to perform various tasks through the ChatGPT user interface, including checking wallet balances, transferring tokens and purchasing NFTs.
(1/2) Solana Labs has created an open-source reference implementation for a ChatGPT plugin that lets users interact with the @solana network directly from ChatGPT.
Users will be able to check wallet balances, transfer tokens, and purchase NFTs once ChatGPT plugins are available. pic.twitter.com/08z1IX76zJ
— Solana Labs (@solanalabs) April 25, 2023
Considering the hype around ChatGPT and AI in the blockchain industry, the possibility of a spike in interest in SOL following the launches can’t be ruled out. This can also help increase SOL’s TVL, which recently registered a decline.
The efforts show an impact
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.
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Open interest is declining!
After a massive drop in SOL’s price on 27 April, the token recovered quickly 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 means that the market is liquidating. This indicates that the on-going price trend is coming to an end, suggesting that SOL could register gains in the coming days.