Solana’s Price Drops Another 13% As Network Outage Prolongs

Solana’s price drops another 13% overnight as the network outage problems continue so let’s read more in our latest altcoin news today.

SOL is sinking during the extended downtime but the wider market is up over the past day. The price of SOL dropped by 13% over the past day during the ongoing Solana ongoing network outage. Solana was down for about 11 years and the network validators are working to restart the network. Solana was offline and not producing any blocks for 11 years as of the time of writing and while the fix seems to be imminent with the prolonged downtime taking Its toll on Solana’s price.

Solana’s price drops another 13% as the native cryptocurrency continues with its price crash over the past day. It is now around $147 per coin and dipped as low as $145 this afternoon which is the lowest price in more than a week. The network stopped producing blocks this day and Solana Labs and the community of transaction validators were working to get the network back online. As of the time of writing, node operators are coordinating the network restart to resume validating the transactions. As per the Solana Status account on Twitter, Solana’s downtime was attributed to the flood of transactions that was sent from the bots with as many as 400,000 transactions per second. This caused the network to start working in different paths which eventually overwhelmed the memory of the nodes and caused them to shut down.

Solana Labs CEO Anatoly Yakovenko said that the flood of transactions was sent to Solana-based decentralized finance Raydium. Today, Raydium launched an initial decentralized exchange offering or IDO for Grape Protocol which is a popular toolset used by Solana DeFi apps and NFT projects. The IDO is a type of public token sale to an ICO but takes only place on the peer-to-peer exchange rather than the centralized one. The downtime and resulting price action mark resulted in a halt of momentum which saw the price of SOL increase from $35 to an ATH of $213. Along the way, the NFT collectibles started gaining traction on Solana thanks to popular projects like Aurory and Degenerate Ape Academy. The number of assets locked when Solana DeFi protocols increased dramatically during the aforementioned span and it increased from $1.2 billion worth to $11.3 billion today.

Solana Defi protocols increased dramatically during the aforementioned span and the Solana price drop came during the positive day for the crypto market which is up 3% on the whole over the past day as per coinGecko. BTC is up 4% to $47,027 while ETH is up by 3%.