The Solana (SOL) network, a major player in the blockchain scene with over $1.67 billion in Total Value Locked (TVL) and a stablecoins market capitalization exceeding $2.2 billion, has unexpectedly gone offline at the time of this report. According to data from Solanabeach Explorer, the last confirmed block was around 52 minutes ago, causing a halt in all Solana-based transactions.
What triggered this blackout? And how will it impact the broader crypto market? Dive in.
Understanding the Outage
In response to the disruption, the Solana team quickly acknowledged the outage and assured the community that they are actively investigating to find a speedy solution. During this downtime, none of the smart contracts on the Solana network, including popular projects like Orca DEX and Solend lending, have been operational.
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Historical Hiccups: Solana’s Previous Outages
This isn’t the first time the Solana network has faced such disruptions over the past two years. Previous outages have sparked concerns about the network’s ability to handle the demands of smart contracts, web3 projects, and digital assets. While the Solana team has attributed these interruptions to bugs in durable nonce transaction features, it’s noteworthy that no funds have been lost during these incidents, maintaining support from the majority of users.
SOL Coin Takes a Hit
The impact of the Solana network outage is evident in the market, with the SOL coin experiencing a decline of over 3 percent in the last few hours. Currently trading below the crucial support level of $94, there is a risk of SOL prices dropping further towards $80 if the issue persists, raising concerns of an extended market correction. Investors are closely monitoring the situation, hoping for a swift resolution to restore stability to the SOL network.
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As the investigation progresses, the community eagerly awaits the return of normalcy to the SOL network and the broader blockchain ecosystem.