Solana News Today: Jito Labs Proposes 66% Solana Capacity Boost to Tackle Memecoin Congestion

Generated by AI AgentCoin World
Thursday, Jul 24, 2025 4:36 pm ET1min read
Aime RobotAime Summary

- Jito Labs proposes 66% Solana capacity boost to 100M compute units by year-end, addressing memecoin-driven congestion.

- This follows a July 2025 20% increase to 60M units after network delays from projects like TRUMP$TRUMP.

- The upgrades aim to reduce transaction fees and wait times, enhancing Solana’s high-speed reputation amid rising demand.

- Critics warn prioritizing memecoin traffic risks diverting focus from enterprise DeFi and institutional use cases.

- Solana’s PoH optimizations and storage cost cuts further support scalability, competing with Ethereum’s gas limit adjustments.

Jito Labs has intensified its efforts to enhance Solana’s scalability following recent network congestion driven by surges in memecoin activity. The

blockchain increased its block capacity from 48 million to 60 million compute units in July 2025, a 20% expansion aimed at reducing bottlenecks during high-demand periods. This adjustment followed prior issues where memecoin launches, such as TRUMP$TRUMP and MELANIA$MELANIA, overwhelmed the network, causing delays and higher transaction fees [1]. Jito Labs, a key player in the Solana ecosystem, has since proposed a further increase to 100 million compute units by year-end—a 66% jump from the current level—under the SIMD-0286 initiative. This move, if implemented, would align with the network’s broader strategy to accommodate decentralized trading activity and prevent future congestion [2].

The upgrades are part of Solana’s ongoing infrastructure improvements, including optimizations to its Proof of History (PoH) timekeeping protocol, which has reduced median block propagation delays to under 600ms. These advancements enhance transaction throughput and stability, supporting the network’s reputation for high-speed finality. Additionally, new state and account compression features have lowered on-chain storage costs, benefiting developers in sectors like GameFi and NFTs. The Solana Mobile Stack (SMS) also continues to expand, with the Saga phone driving adoption of mobile dApps and fostering hardware-integrated Web3 tools [3].

The network’s native token, SOL, has traded near $190, reflecting mixed performance despite a 12% price surge earlier in the year that pushed it above $200. This volatility underscores the interplay between speculative trading and infrastructure-driven demand. Analysts note that while short-term price swings are tied to memecoin activity, long-term viability hinges on Solana’s ability to maintain efficiency amid rising transaction volumes. Jito Labs’ proposed capacity increase could reduce per-transaction fees and wait times, improving user experience during peak periods. However, critics argue that prioritizing memecoin-driven demand risks diverting focus from enterprise-grade applications and institutional DeFi protocols, which remain core use cases for the blockchain [4].

Ethereum’s recent gas limit adjustment—raising its gas ceiling to 45 million units since February—highlights broader industry pressure to scale. Solana’s proactive approach, however, positions it as a competitive Layer 1 solution for high-frequency trading and token launches. By addressing congestion proactively, Jito Labs aims to solidify Solana’s reputation as a reliable, high-performance chain, potentially attracting developers seeking predictable costs and faster settlement times. The success of these measures will likely influence how other blockchains manage scalability challenges in the coming months.

Source: [1] [Jito Labs Backs Further Solana Scaling After Memecoin-Driven Congestion] [https://coinmarketcap.com/community/articles/6882956c62fc924b0b927cfc/] [2] [The Protocol:

Validator Exit Queue Backs Up] [https://sg.finance.yahoo.com/news/protocol-ethereum-validator-exit-queue-182336889.html]