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Can Solana get back up to speed after its network outage?

By:
on May 3, 2022
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  • The Solana Network experienced a seven-hour outage throughout the span of April 30 and May 1.
  • After this occurred, they discovered that bots hoarded the Candy Machine application.
  • This isn't the first time Solana experienced issues that could impact the overall confidence in the project.

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Solana SOL/USD is a public, open-source blockchain network that supports smart contracts, as well as non-fungible tokens (NFTs).

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The SOL token is the native cryptocurrency token used throughout the Solana ecosystem. The token can pass to nodes within the Solana cluster in exchange for the procedure of running on-chain programs or validating their output.

Solana’s Network Outage and Bot Traffic

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The Solana (SOL) blockchain network experienced a seven-hour outage throughout the span of April 30 to May 1.

This was a result of a huge number of transactions from minting bots that minted non-fungible tokens (NFTs).

Specifically, the network experienced 4 million transactions, which ended up congesting the network.

The result was Solana’s outage, which occurred from 8 PM UTC on April 30 up to 3 AM UTC on May 1 when the network restarted.

Through an official tweet, Metaplex reacted to this by announcing that they have merged and will soon deploy a botting penalty to the program as part of a broader effort to stabilize the network.

Furthermore, according to the Twitter thread, they announced that they would implement a 0.01 SOL charge on wallets and that attempt to complete invalid transactions, which are typically done by bots that are trying to mint.

In any case, this outage resulted in a negative impact on SOL’s price, as it decreased. 

The question on investors’ minds right now is if SOL is worth buying after this incident, especially after we covered how on March 9, SOL failed to make a strong rebound as crypto market prices gained. 

Should you buy Solana (SOL)?

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On May 3, 2022, Solana (SOL) had a value of $88.05.

In order for us to truly see what this value means for the future of the SOL token, we will be going over the token’s all-time high, as well as the performance it experienced throughout the previous month. 

The all-time high of the Solana (SOL) cryptocurrency was on November 6, 2021, when the token reached a value of $259.96.

However, when we go over the performance of the token throughout the previous month, Solana (SOL) had its highest point of value on April 2, with a value of $141.86.

Its lowest point of value, however, was on April 30, when the token decreased in value to $90.46 at the time of the outage. 

Here we can see that throughout the entire month, the token was decreasing in value, but at the outage, it was $51.4 lower in value, or by 36%, than its value at the beginning of the month on April 2.

However, if Solana (SOL) manages to break past the $90 price barrier it’s currently facing, it’s a solid buy, as it can reach $100 by the end of May 2022 and get back up to speed.

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