On February 6, Solana’s Mainnet Beta stopped working and producing blocks. This event resulted in a major outage that lasted over two hours. All protocols had their activities halted, affecting users, investors, and developers.
Notably, the Solana Foundation communicated that engineers have found the issue and have already released a patch. It took 1.5 hours from the first communication on the major outage to the release of the patch by Solana Status on X (formerly Twitter).
Picked for you
SOL price analysis
In the meantime, SOL’s price dropped by 3% against the dollar during the incident. SOL was trading at $95.99, going to as low as $93.10 in less than two hours. As of writing, Solana changed hands by $94.11, and investors await to measure the damages.
Technical analysis shows a strong support level at $88.71 per SOL, while Solana faces resistance at $101.78. Essentially, the token could test its support following the negative news or even move toward its resistance if the issue is provenly solved.
Nevertheless, the future of Solana is uncertain, which might also affect investor’s confidence in the project that is still in beta. This situation worsens, considering these incidents have been recurrent for Ethereum’s main competitor by market capitalization.
Solana network outages historic
Interestingly, one of Solana’s biggest issues happened in September 2021 with a major outage that lasted for 18 hours. However, this was just the beginning of what became a poor track record of the network’s functionality.
In 2022, Solana experienced a series of issues and similar incidents, according to Solana Status’ website. As reported by Finbold in June 2022, SOL lost 77% of its value following these outages. All that seemed to end by February 2023, with a major outage that lasted nearly 19 hours.
Cryptocurrencies are inherently volatile and unpredictable, but these technical flaws create more risks for their participants.
In this context, this most recent incident again shakes the cryptocurrency market‘s confidence in the project. Investors, users, and developers must act cautiously moving forward and follow the updates related to this issue, its solutions, and technical forecasts for the future.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.