- On Saturday, Solana experienced a significant slowdown in block finalization.
- The network outage impacted the price of the Solana utility token, SOL.
The crypto community makes fun of the Solana blockchain as it has suffered another major network outage in recent times. “How is this proof-of-stake blockchain in the top ten crypto list,” a crypto enthusiast twittered.
A crypto influencer account on Twitter used the former CEO of the bankrupt FTX exchange, Sam Bankman-Fried, as a meme, saying he was the culprit.
In the early hours of Saturday, the Solana blockchain experienced reduced functionality. Users reported a significant slowdown in block finalization and some transaction failures. An official Solana Twitter page confirmed the situation, noting that a coordinated restart was underway to address the issue.
Key figures in the Solana ecosystem were still searching for a villain hours after the crisis began. Among the major hypotheses was that something called a “fat block” had clogged up the blockchain’s workings.
Unfortunately, the network outage impacted the price of the Solana utility token, SOL. The coin trades at $22.67 after losing over 4% in cumulative seven-day performance, according to data from the market tracking website, CoinMarketCap. Additionally, its 24-hours trading volume fell by over 16 as crypto traders bought and sold only about $500 million worth of SOL.
Last Wednesday, the US-based crypto exchange, Coinbase, released a research report arguing that the fundamental value proposition of the Solana blockchain persists from a technical perspective, regardless of the widespread negative sentiment in the community.
The exchange noted that Solana was well-positioned to reassert itself as a genuine layer-1 competitor, given Solana’s relative strength in network activities, transactions, users, and development.