Why Solana Price Fell Today?
Highlights
- Solana plunges 7.72% in the last 24 hours.
- Users lament network congestion in recent weeks.
- FTX Bankruptcy Estate sells two-thirds of discounted SOL tokens.
Solana (SOL) has plummeted in the last 24 hours following market factors and network issues due to an influx of users. The asset is down 7.72% today and 6% this week wiping out gains recorded by the recovery efforts in the market.
Once hailed as outperforming other crypto assets on weekly gains, Solana is recording sharp liquidations as sentiment plunges in the short term.
Solana’s Network Congestion
Solana has seen its recent gains plummet after network bugs continue to plague the blockchain. The number of failed transactions on the network has surged in recent weeks hitting up to 70% of non-voting transactions. The high rate of failures creates a clog that sparks user complaints in social media spaces.
Solana has recorded a massive increase in network usage from Q4 2024 leading to a significant price action. Trading bots have been linked to failed transactions as most are dropped before they get on-chain. Mert Mumtaz of Helius Labs explained that the metric can be misleading for 90% of users.
Anatoly Yakovenko addressed the issue on X (formerly Twitter) stating that bug issues will be identified and fixed.
“dealing with congestion bugs sucks so much more than total liveness failure. the latter is one and done, bug is identified and patched and the chain continues. the former has to go through the full release and test pipeline. shipping fast is impossible.”
Bug Dominates Community
Austin Federa, a member of Strategy at the Solana Foundation stated that the network is being tested by an influx of traffic with bug fixes expected over next week.
The Solana network is, once again, being battle tested with a huge influx of traffic. Bug fixes are rolling out over the next week, and things will start to improve.
But there is no silver bullet and no "finished" – we expect demand will continue to increase, which will require…
— Austin Federa | 🇺🇸 (@Austin_Federa) April 5, 2024
“This is what scaling looks like, it’s not a one-and-done operation. But time and time again, the diverse group of core contributors to this network have shown Solana does, in fact, scale,” he wrote.
In another development, FTX’s Bankruptcy Estate has sold almost two-thirds of its SOL tokens at a discount. The firm sold between 25 million and 30 million SOL tokens to Galaxy and Pantera Capital.
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