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Solana’s native cryptocurrency SOL has tanked another 6% today slipping under $90 as the Solana blockchain continues to face major network congestion issues. SOL has been in a free-fall during this broader crypto market rout and has corrected nearly 60% from its all-time high in November 2021.
Over the last weekend, the Solana blockchain faced a 48-hour-long network instability disappointing investors and traders to a great extent.
Engineers have released a notice on the Solana website on Saturday, January 22, which reads:
Solana mainnet beta is experiencing high levels of network congestion. The last 24 hours have shown these systems need to be improved to meet the demands of users, and support the more complex transactions now common on the network.
However, as of Monday, January 24, the status shows that the systems are fully operational once again.
Huge thanks to all the folks that debugged these issues over the last 48 hours. @leolukde @CertusOne @buffalu__ @BlockdaemonHQ @triton_one @ShinobiSystems @Neodyme and the folks at solana labs who didn't sleep for 48 hours. https://t.co/bq1GZ78rnt
— anat◎ly 🦀🤿🏒 🤙 (@aeyakovenko) January 23, 2022
Besides, Solana’s frequent network outages have caused traders to lose their trust in the platform. As a result, other Ethereum Layer-1 competitors like Fantom, BSC, etc have been gaining ground. Crypto investor and Boolean Fund founder Mark Jeffery wrote:
Another day, another 48 hour Solana outage. This is like the sixth time this has happened in 3 months. I have zero faith in it now. It is the new EOS. The fight is now between ETH, BSC, Fantom, Avalanche and Terra.
Solana Losing DeFi Market Share
Amid frequent outages, questions have arrived whether Solana is the real Ethereum-competitor! Solana has 50% in terms of DeFi TVL as DeFi traders chose other low-fee alternatives like Fantom, Avalanche, Terra, etc. As reported, Fantom has now become the second-largest network in terms of DeFi TVL after Ethereum.
On the other hand, Solana has slipped to the sixth position with DeFi TVL of $7.7 billion, as per DeFiLlama. We expect the Solana team to really come up with a robust solution and win back the trust of DeFi enthusiasts. Solana is planning for additional network fixes over the coming two to three months. The engineers team wrote:
“These forthcoming releases are aimed at improving the state of the network, with more improvements expected to roll out in the next 8-12 weeks. Many of these features are currently live on Testnet, where they are being rigorously tested.”
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