The blockchain Solana can look back on one thing in particular in the last three months: failures. Since the beginning of the year, there has been an increase in such cases in the network. The course continues to lag behind the ATH (All time high).
Solana is often referred to as an Ethereum killer in the crypto sector due to its transaction speed. In recent months, the project has shone with failures, the course suffered. The last one occurred on June 1, 2022 and lasted about 4 hours.
Memories of January come back, when the blockchain had problems for almost a whole week. In total, the blockchain has had a failure in the last three months.
“A persistent nonce feature caused the block to be considered invalid and no consensus was reached. The network is recovering without the feature – there should be a solution as soon as possible.”
Anatoly Yakovenko, co-founder of Solana, explains the problem that led to the failure on June 1. You may still be able to remember the failure in January – the chain was only fully usable after one week.
Although a denial-of-service attack (DoS) was responsible for this at the time, critics were already raising their first voices against the blockchain. A DoS causes a network to fail due to high data traffic. This overload prevents validators from processing transactions.
The critical voices are getting louder due to the numerous failures:
Just sold all of my $SOL for $ADA. Solana is a great project but personally I can’t in good faith continue to invest in a layer 1 that shuts down on a frequent basis (partial and major outages about 11 times).
#ADA #Cardano
– $Smac07_NFT$ (@Shawn_Deezy07) May 31, 2022
“I can no longer invest in a Layer 1 blockchain that regularly fails,” says a Twitteruser. Although the developers are already working on such problems, investors do not get the feeling that something is wrong. Although the DoS attacks were initiated from the outside, the current failure is an internal bug.
… and the course?
The course also suffers from the perpetual problems. Despite the positive development around NFTs and DeFi, the price fell to 36 US dollars in the meantime, which marks an all-time low in 2022.
With a total value locked (TVL) of 3.6 billion in the DeFi area and over 2 billion US dollars in NFT volume, the price should be significantly higher.
With a TVL of 3.6 billion in September 2021, the price was still around. $100. In retrospect, investors might assume that other market participants include the ongoing problems in the price.
Solana price suffers: NFT sales boom
Although Solana has lost almost $14 billion in market capitalization since May, the blockchain is playing at the top of NFTs.
A picture of cryptoslam.io/
In terms of NFT sales volume, Solana now ranks only behind Ethereum and Ronin, and the trend is rising. Since Ronin was recently hacked with the flagship project Axie Infinity, Solana is even in 2nd place on a monthly basis. The Solana NFT sales are larger than those of the direct DeFi competitors Avalanche or Cardano.
In total, 286 million US dollars were generated by NFTs by October 2021, with another 83% of buyers added from October to January 2022. In January 2022 alone, 298 million US dollars were raised!
Thug Birdz, Country Club, Frakt, Portals or Solstead are some of the most famous NFT projects on the Solana blockchain. Solana Monkey Business alone was able to generate 186 million US dollars in sales volumes – with around 10,000 sales.
The company’s own cryptocurrency SOL is currently still well below the expectations of investors, but could correct upwards in the near future. It would be no wonder in view of the strong fundamentals. The current price of around $ 42 could provide an opportunity for investors.
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