Solana Price Prediction as SOL Blockchain Goes Down

22 views 11:09 am 0 Comments February 6, 2024

The Solana network is suffering a minor outage with the last transaction halted at 09.52 UTC, according to the block explorer.

Engineers and validators are currently investigating the mainnet-beta for the source of the problem. Blockchain company and leading Solana validator Laine tweeted: “It is not clear yet whether a recovery is possible without a coordinated cluster restart.”

According to a follow-up tweet by Laine, engineers were investigating the problem of building a patch. After testing the remediation, they will inform validators of the next steps.

Laine then tweeted that engineers found “no inconsistencies” and validators are awaiting a final confirmation to proceed from “the last optimistically confirmed slot.”

Solana network performance impacts SOL price

The outage has had an adverse effect on the price of the Solana network’s native coin, SOL.

In the last hour, the price has dipped 2.2%, compounding a 24 hour depreciation of 4.4%, according to data by CoinGecko.

Over the last 7 days, SOL has shed 10%, wiping out all of its gains over the last 30 days.

SOL currently changes hands at $93.63. While chart data suggests the coin has found strong support at this level, the outage could mean SOL holders haven’t yet seen the end.

Based on historical data, SOL could bottom to previous support levels of around $0.87.

It’s unlikely to spiral down to its 2023 low of around $0.79, though. This previous bottom was part of a market-wide rout, catalyzed when JP Morgan CEO Jamie Dimon said that Bitcoin’s pseudonymous creator Satoshi Nakomoto could one day return and “erase” the cryptocurrency.

Solana chart
Source: TradingView / SOLUSDT

In short, SOL fans can probably expect more losses in the short-term, but the coin’s current price action is due to a technical fault, rather than any threats to the network or its reputability.

Sponge losses with this altcoin

Crypto’s leaders by market cap have yet to experience anything like their heady growth in the pandemic era. Now that regulators have shone their headlamps on the industry after scandals by Terra and FTX, the altcoin sector has potentially more room for growth.

ERC-20 token Sponge (SPONGE) hit exchanges last April and posted an immediate rally of 150%. Having recently migrated to Polygon, the network is on the verge of releasing SPONGE V2. The V1 was discontinued yesterday.

Sponge V2 features an improved staking model and serves as the native token of a play-to-earn (P2E) racing game.

Race winners are rewarded in SPONGE V2 tokens, which they can stake for an annual yield of 245% APY.