Solana’s (SOL) market cap has been the focus of many crypto news sites in the past few weeks as it topped $ 62 billion this month, while the price of the SOL token has increased 6,000% in the past few weeks. this year. SOL has been all over the news and has attracted many new investors, some of whom claim it is a better alternative to Bitcoin and Ethereum. However, the massive decline in Solana that followed changed many opinions – currently the buying and selling of SOL tokens is not happening in the same volume as in the past few weeks.
Things happened when the Solana blockchain stalled and couldn’t process transactions. This is a complete contradiction in terms, knowing that the token’s website states that “transactions are never stopped” on its network. However, transactions ceased that day and Solana’s massive decline followed.
Many people then speculated what had happened, and some even said that SOL was a victim of “resource scarcity”. Many social media users have gone wild and others have even defended the coin. We’ve all seen one of the worst things happen to a blockchain – and how Solana crashed after the system went down.
Even Bitwise Asset Management’s President Teddy Fusaro confirmed this, saying:
“This is something we’ve seen many times in the crypto market since it became a phenomenon. And it reflects how new the industry is and how the industry has to scale. “
With massively developed technologies, bandwidth problems can arise. Solana’s massive decline happened because of this, but mostly because of the lack of preparation by the original developers in building this new product.
In many ways, Solana has fallen victim to its own success – from trading coins to trading over $ 200 per coin. Proponents say the speed and lower cost of transactions on the blockchain are the main catalysts for price – but Solana’s massive decline has proven far wrong.
The founder of Solana Labs, Anatoly Yakovenko, commented on the incident in two words “increasingly painful”. He told Bloomberg that “blockchains are essentially run by volunteers, random people with different incentives” and “cannot guarantee that these networks are completely flawless”.
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