Solana (SOL) Slumps 15% Amid Shutdown, More Losses In Store?

Solana (SOL) price slumps nearly 15% to a year low as developers shutdown Solana blockchain after a bug in the durable nonce transactions feature ceased block production for more than 4 hours. Solana seems to lose trust as it suffers problems for the ninth time in a year. Moreover, people start questioning the decentralized aspect of Solana as the shutdown causes all Solana applications and features to stop functioning.

Solana Price Falls Amid Series of Failures

Solana, considered an “Ethereum killer” for handling massive transactions on its blockchain more cheaply, seems to be failing as it suffers its second outage in a month and ninth outage in less than a year. In early May, the Solana blockchain was down for roughly seven hours. The latest outage was for more than 4 hours, with validators forcing a restart of Mainnet Beta at 9 PM UTC after upgrading to v1.10.23.

The series of disruptions and degraded performance on the Solana blockchain is pushing prices to fall further. In fact, the longer-than-normal block times have caused the Solana blockchain clock to run 30 minutes behind real-world time. Moreover, the issues related to non-fungible token (NFT) minting have also impacted Solana.

In the last 24 hours, the SOL price dived to its August 2021 low of $38.36. If prices fall further below the crucial $38 support level, it could push SOL to tumble below $33, the next support level. The technicals are also not looking good as RSI and moving averages indicate a further fall in Solana price.

Solana registered liquidation of almost 7 million in the last 24 hours. The liquidations of mostly long positions were recorded on Binance, OKX, and Bitfinix.

Community Backlash Against the Blockchain

The latest shutdown of the Solana blockchain globally brought a community backlash against Solana. Moreover, many Reddit users question the decentralized aspect of the blockchain as the impact was seen globally on Solana-related applications. In fact, many users on Twitter plans to move away from the project.