The Solana blockchain recently outperformed Ethereum in the stablecoin arena, achieving a record-breaking weekly transfer volume of $103.01 billion, surpassing Ethereum's $90.87 billion. However, Solana's rise has been marred by the emergence of sophisticated drainer kits targeting its decentralized applications (dApps), with security firms like Chainalysis and CertiK noting an increase in these scams since December of 2023. These drainer kits, often sold in private hacker groups and the dark web, pose a serious threat to Solana users. Additionally, the blockchain community is also dealing with deepfake scams, as highlighted by a fake video of Solana’s co-founder Anatoly Yakovenko floating around on various social media platforms.
Solana Outperforms Ethereum in the Stablecoin Arena
The Solana blockchain has achieved yet another important milestone by surpassing Ethereum and all other chains in weekly stablecoin transfer volume for the first time ever. In fact, data indicates that Solana experienced a monthly transfer volume increase of about 612%.
With a staggering transfer volume of $103.01 billion, Solana not only outpaced Ethereum, which recorded $90.87 billion worth of transactions, but also other prominent chains. Tron and BNB Chain, for instance, reported volumes of $82.29 billion and $14.65 billion, respectively. In contrast, Arbitrum experienced a 26.2% decrease, settling at $8.11 billion.
Solana's good position in the stablecoin domain is also evident in the very well known stablecoins it hosts like USD Coin (USDC) and Tether (USDT). Additionally, Solana supports other stablecoins like Parrot USD (PAI) and UXD Stablecoin (UXD), though they have smaller market caps.
However, Solana's recent achievements extend far beyond just transfer volumes. The blockchain has also surpassed Ethereum in daily and weekly decentralized exchange (DEX) trading volumes. Moreover, it has taken the lead in perpetual futures trading volume, a crucial component of market liquidity and investor interest.
These developments are not just numbers on a chart; they represent a shift in the dynamics of the cryptocurrency world as the new year kicks off. Solana's rise challenges the long-held dominance of Ethereum and signals a way more competitive and diverse blockchain ecosystem.
The Rising Threat of Solana Drainer Kits
Unfortunately, with Solana’s success over the past few weeks came an increase in various scams. The blockchain community has been facing a threat from a new breed of cybercriminals targeting Solana-based decentralized applications (dApps). These malicious actors use sophisticated drainer kits to steal assets from unsuspecting users. This alarming trend has caught the attention of many blockchain security firms and analysts are starting to raise concerns about the increasing number of these attacks.
Brian Carter, a senior intelligence analyst at Chainalysis, shed more light on the flexibility and effectiveness of these draining kits. According to him, the most successful ones are not limited to targeting Solana but are capable of attacking various assets using different methods. Carter also mentioned a concerning link to Russia, pointing out that a small community of developers, often communicating in Russian, is behind the sale of these drainer kits. The largest community dedicated to a Solana drainer has about 6,200 members.
Carter acknowledged that phishing with malicious links is a very common tactic employed by criminals. They exploit the fear of missing out (FOMO) in decentralized finance (DeFi) communities, spamming users with links to fraudulent websites that appear legitimate. These websites are often promoted through compromised social media accounts and Discord communities.
CertiK, a blockchain security firm, observed a surge in the offering of Solana drainer kits to scammers since December of 2023 when the hype surrounding SOL really started to reach its peak. These kits, which are available in private hacker chat groups and the dark web, can be bought for as little as $250 per month.
Joe Green, an analyst at CertiK, revealed that the total amount stolen through Solana drainers is still unclear. However, he mentions that some of these drainers operate similarly to Ethereum Virtual Machine (EVM) drainers, where the provider takes a cut of the stolen assets. He adds that phishing on the Solana network isn't new, but with the recent resurgence in Solana's price, there's an increased focus on targeting individuals in the ecosystem.
A recent report from Blockaid, a Web3 security firm, specifically highlighted the sophistication of these drainers. It reported that one particular Solana drainer managed to steal hundreds of thousands of dollars worth of SOL and SPL tokens. These drainers are so advanced that they can deceive the simulations used by Solana wallets, leading users to unknowingly sign off on malicious transactions.
Solana Co-Founder Video Raises Eyebrows
Solana drainers are not the crypto community’s only worry. The rise of deepfakes has introduced a new level of complexity to the challenge of maintaining online authenticity and security. A recent incident involving Solana co-founder Anatoly Yakovenko highlights the growing concern around this technology.
A video, which has been circulating on the internet and even appearing as an ad on platforms like YouTube and X, features Yakovenko announcing a “historic day” for Solana. He thanks the SOL community and offers a giveaway through a QR code and a website. However, despite its realistic appearance, this video is a fake.
Austin Federa, head of strategy at the Solana Foundation, expressed his serious concerns about this growing trend of deepfakes and AI-generated content. While acknowledging that this issue extends beyond the crypto industry, Federa emphasizes the proactive stance of Solana in combating these fakes. The foundation promptly reports incidents, but the responsibility of removing these fakes lies with the platforms hosting them.
The crypto industry has long voiced frustrations over the sluggishness of Big Tech platforms in addressing and removing scams. As deepfakes become increasingly realistic, the urgency for quick removal just becomes more and more important.
