Solana

Solana trades down 10.3%, but network issues raise concerns

Solana

Solana (SOL) traded up 15.7% and led earlier gains as the crypto market began to see the green zone, recovering from the total cap value dropping to $2.1 trillion. dollars, now at $2.2 trillion, a 5% increase in 24 hours. .

While several top 100 altcoins relish the rally, it’s a polarized day for Solana’s popularity as the network has experienced major congestion issues that could lower price expectations for 2022.

A few days ago, SOL hit a two-month low of around $150, but the losses have reversed in the past 24 hours. The digital coin rose as high as $188, a daily growth of 15.7%. Solana’s market capitalization value increased from $51.17 billion to $56.76 billion during the period (adding $5.59 billion).

Solana is trading at $182 in the daily chart | Source: SOLUSD on TradingView.com

In terms of competition for the top 5 cryptocurrencies by market capitalization, Solana took the win while Ethereum jumped around 4%. Cardano soared 3% and Avalanche, on the other hand, also sees growth jump 15% in 24 hours after announcing native support for USD Coin (USDC), breaking above the $100 mark.

Related Reading | Solana could become the next Bitcoin, according to FTX’s Sam Bankman-Fried

Solana, the neighborhood cool kid?

Solana
Taken from Twitter

As Solana gains popularity surrounded by mainstream projects, crypto users at CoinMarketCap shared positive median price estimates for the end of the year: 20,490 people believe SOL will close the year around $185. However, the community predicts a drop from 2022 to $171 and then a decline to $168 by the end of February. What do they see?

Solana

The cool neighborhood kid is having trouble at home and fans are worried. The network experienced more technical problems with a large number of failed transactions: more than 2,000 per second, or more than 60% of the total volume, according to some.Solana

Several investors and developers expressed their skepticism and frustration on social media. Some see the glitchy scenario as a sign of backsliding as it does not instill confidence and also fails to deliver on blockchain’s promise of high efficiency.

Related Reading | How Solana was shot down by this dApp launch

Solana has more troubled times to mention. The first was back in September with a 5 p.m. network outage. Then, in that month alone, on December 9, the network allegedly suffered a Distributed Denial of Service (DDoS) attack which also resulted in delayed transactions.

Clarity was not the top priority back then. Deleted first tweet mentioning DDoS attack, then infrastructure company GenesysGo reported the problem, but claimed it was due to “growing pains”. And on December 13, a first Solana-based NFT (SolChicks) announced that “CHICKS HAVE TAKEN DOWN SOLANA. » :

We apologize for the inconvenience caused by this delay but tens of thousands of people are trying to buy $CHICK and Raydium server crashed. It looks like SolScan is also not charging our contract address at this time.

However, Solana’s price hasn’t scared investors since the last failed trade, at least not beyond the weak prediction from the CoinMarketCap community. Is the hype stronger than the stakes?

The rise of Solana has seen big investors as backers (like Sam Bankman-Fried, Andreessen Horowitz, and Polychain) and a slew of big name projects, especially in the gaming and NFT sectors. If blockchain transactions are sometimes not fast enough, their commercialization is.

For example, basketball giant Michael Jordan just announced a platform for athletes called HEIR, based on Solana. This mainstream event was supposed to drive up the price of SOL. Will popularity be enough for the future of blockchain?