The Surge in Solana’s Investor Interest
The decentralized finance (DeFi) crypto project Solana (SOL) has recently gained significant attention and investor interest. As a result, the native token of Solana has experienced a rally to new heights. In addition to the increased interest in Solana, meme coins launched on the platform have also garnered significant attention.
Solana Network Congestion
However, amidst this surge in interest, on-chain data reveals that the Solana network is currently facing severe congestion. This congestion has significant implications for transaction processing and network performance.
Data shared on X (formerly Twitter) on March 17 by Dagnum_PI highlights the congestion issues on the Solana network. The average ping time on the network is reported to be between 20-40 seconds, indicating delays in communication between nodes. These delays impact transaction confirmation times and overall network responsiveness.
Ping Loss and Transaction Failures
In addition to delayed communication, ping loss is also significant on the Solana network, ranging from 30-50%. This exacerbates congestion and contributes to transaction failures and delays. The data indicates that up to 50-80% of transactions are failing on the Solana network, highlighting critical issues with transaction processing and network stability.
Solana’s Lower TPS
Despite claims of achieving a transaction processing system (TPS) of 50,000, the observed TPS under full network conditions with congestion and wait times of 30-50 seconds is much lower. It has been consistently observed over the past two years that Solana maxes out at 1100-1200 TPS during congestion.
“In reality, under full network conditions with 30-50s wait times, Solana maxes out at 1100-1200 TPS. This has been observed consistently over the past 2 years during Solana congestion,” said Dagnum_PI.
It is worth noting that vote transactions are included in the claimed TPS of 50,000, which may not reflect the actual throughput available for non-vote transactions. This discrepancy between advertised and observed TPS could contribute to user dissatisfaction and misrepresentation of network capabilities.
Dagnum_PI suggests that the high levels of spam and Miner Extractable Value (MEV) from meme coin activity overwhelm the network’s capacity, leading to transaction failures and delays.
Solana’s History of Outages
It is important to acknowledge that Solana has previously experienced concerns regarding outages. With the current congestion issues, these concerns may be further compounded for the blockchain.
The high rates of transaction failures can lead to frustration among users and developers, ultimately undermining confidence in the reliability of the Solana network. This can have a negative impact on assets associated with the network, such as SOL.
Solana has been marketed as a fast and cheap blockchain, often considered a potential ‘Ethereum (ETH) killer’. However, it has faced criticisms regarding high fees.
Solana’s Current Trading Status
By press time, Solana is trading at $194, having rallied almost 1% in the last 24 hours. Over the past seven days, SOL has seen an increase of over 35% in value.
🔥 Hot Take: Solana Network Congestion Raises Concerns 🔥
The surge in investor interest in Solana has resulted in significant congestion on the network. The average ping time is delayed, ping loss is significant, and a high percentage of transactions are failing. These congestion issues challenge Solana’s advertised transaction processing system (TPS) capabilities.
Furthermore, the overwhelming spam and MEV from meme coin activity on the network contribute to these congestion issues. Solana’s history of outages compounds concerns and may undermine confidence in the network’s reliability.
While Solana has been marketed as a fast and cheap blockchain, criticisms regarding high fees persist. It remains to be seen how Solana will address these congestion issues and maintain investor confidence in its network.
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