Solana DEX Volume Hides Circular Trades, Automated Bots Blamed

Research from blockchain data company Bitquery has revealed a significant spike in trading volume on Solana's decentralized exchanges (DEXs), but closer examination of the data shows that much of this activity is driven by circular trades and automated bots.

In a 30-day sample, Bitquery flagged $117.7 billion in Solana DEX trades as potentially suspect, with 58.4% of all trades categorized as 'circular or bot-like'.

One notable example cited by Bitquery involved a token named Claude, where two wallets bought and sold the same token within the same transaction, generating about $2,000 in volume.

The research also identified two groups of 20 and 50 wallets with similar trading records, accounting for $26.3 billion of the flagged amount.