- A Market expert has warned that congestion might pose a threat to Solana’s popularity.
- The coin has managed to stay resilient in relation to price despite recent outages.
Tristan Frizza, a renowned crypto expert and CEO of Zeta Markets has dropped his opinion regarding recent congestion threats affecting Solana (SOL) and its impact on the price of the cryptocurrency.
SOL Network’s Congestion Issues
Frizza cited the Jito project, which opted to shut down its meme pool service due to the popularity of the Solana network as an example of congestion restraints.
“We can see this being a massive problem for users with the recent decision by Jito to shutdown their meme pool service in an attempt to combat rampant sandwiching attacks which would give users bad prices on their swaps,” Frizza noted.
Frizza went on to state that Solana’s network has seen a high influx of user activity, thus leading to congestion and attracting attackers causing outages following reports from Crypto News Flash. The crypto expert, however, outlined the role of community-driven solutions, and technological advancements to solve this issue.
One of Frizza’s recommendations is optimizing order books to prevent the Solana runtime computing ecosystem from overloading. He also added that the release of the anticipated version 1.18, which addresses inconsistencies in the local free market could also be a possible solution.
Notably, the inability of the Solana network to handle large transaction volumes often causes network outages. In February, the Solana network quit the processing block. While confirming the situation, Laine, a blockchain software developer and Solana validator stated that the outage was caused by reduced performance in the mainnet.
It is worth mentioning that before this incident, protocol’s validators had rebooted the network on two occasions in February 2023 following an error from an unknown source that resulted in the stoppage of economic activity.
Impact of Solana’s Network Outages on SOL
While the occurrence of outages in Solana’s network has become more frequent, it has not stopped SOL from reaching a monthly high in hopes of retesting its All-Time High (ATH) soon.
Amid the recent rally in the broader crypto ecosystem, the price of Solana jumped to a 52-week high of $186.19, a feat achieved in the early hours of trading on Friday. At the time of writing, data from Marketcap pegs the price of SOL at $168.88, down by 2.6% in the past 24 hours. With sustained interest showcased by the 17% jump in trading volume to $12,817,250,319, Solana’s current correction might be tagged a short-term test for more impending rally.
With the menacing outages, there has been little or no negative impact on the price of Solana to date. While the protocol’s engineers have always risen to the occasion reiterating Crypto News Flash’s earlier reports, the influence of the spot Bitcoin ETF offering trading on US markets has helped sustain the luster of top altcoins like SOL.
With a focus on Solana’s future prospects, many have projected that the coin has a chance of flipping Ethereum in the future.
This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.
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