Solana Network Experiences Outage
The Solana (SOL) network, with over $1.67 billion in Total Value Locked (TVL) and $2.2 billion in stablecoins market capitalization, has been down for an hour. No Solana-based transactions have been going through, and no smart contracts have been working on the network, affecting web3 projects like Orca DEX and Solend lending.
Solana Forms a Downtime Habit
Solana has experienced similar outages in the past two years, raising concerns about its ability to handle mainstream adoption of smart contracts, web3 projects, and digital assets. The team has attributed the periodic outages to bugs in durable nonce transaction features, but it has never resulted in a loss of funds, retaining the support of the majority of its users.
Market Impact on the Solana Network Outage
The outage has triggered bearish sentiment on the SOL coin, causing it to drop more than 3 percent to trade below the crucial support level of around $94. If the issue is not resolved quickly, the SOL price is likely to drop toward the support level of around $80, increasing the chances of further market correction.
Hot Take: Solana Faces Network Outage
Users and crypto enthusiasts are now keeping an eye on Solana’s team of engineers, hoping for a quick solution to the current network outage. Meanwhile, the downtime has led to bearish trends and a decline in SOL coin price, signaling the potential for further market correction if the issue is not resolved promptly.
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