SOL is currently trading at around $85. This is a far cry from its all-time high which is above $200.
Solana (SOL) in the last few days was a victim of a price dip that has caused an uprising among traders. The situation followed a network outage that affected the blockchain for close to 48 hours.
The proclaimed “Ethereum killer” has been the choice location for traders who look to tap on the protocol’s speed, scalability, and cheap transaction fees to carry out their businesses in the crypto space. But with another outage recorded in the space of the last 30 days, the network drew the ire of the crypto community who began to question its efficacy.
Per available information, the 48 hours outage resulted in a wide-reaching expensive loss for its community. This made Jim Greco, a former KCG executive and pundit in matters market structure.m to tweet that the latest “meltdown makes it hard to trust the Solana network.”
The outage began last week Friday, during the peak of the crypto market dip which affected the prices of assets in the industry. This dip led to the loss of over $200 million in the market of the space.
The outage resulted in investors’ inability to use the blockchain for their transactions and it led to the liquidation of some users who were using DApps on its ecosystem for their operations.
While the network has since been able to rectify the issue and the blockchain is now back online, available data from CoinMarketCap shows that SOL, the native token of the network, is currently trading for less than $85. This is a far cry from its all-time high which is above $200.
It also shows that the asset was one of the worst-hit during the market crash as it has lost over 50% of its ATH now.
Can Solana (SOL) Compete against Rivals?
With repeated cases of outages on the blockchain, skeptics and critics alike are out on whether the Ethereum killer can withstand the heat to flip Ethereum.
Already the number of its rivals like Avalanche, Terra and even Fantom have witnessed increased usage and adoption by the public due to their ability.
Available data shows that the Fantom network recently flipped Binance Smart Chain to become the third-largest crypto DeFi chain, an indication that users are looking at other options away from Solana.
However, Solana’s team has urged traders and developers alike to be assured of “more improvements (that are) 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.”
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.
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