Solana

Solana has been one of the worst-hit tokens during the recent market recession. SOL is currently down by 83% from its all-time high, and its price decline is attributed to the broader market selling pressure and the woes of its blockchain.

Solana presents a buying opportunity

The price of Solana has made double-digit losses over the past two weeks. The performance is significantly different from that of Bitcoin, as the primary cryptocurrency has held the $30K support level.

SOL’s seven-day low stands at $36, and the price dips came after the network suffered from yet another outage. The outage was one of the several ones that the network has experienced since the beginning of the year.

Cryptoassets are a highly volatile unregulated investment product.

SOL is currently showing signs of a recovery because of the support garnered from the broader cryptocurrency market. The current dips below $40 could have created a buying opportunity for the token, and the trading volumes have spiked significantly. Solana’s trading volumes during the past 24 hours stand at $1.7 billion, allowing it to gain by 12.4% during the past 24 hours.

Issues with the Solana network

The price of SOL suffered a massive decline last week after the network suffered from yet another outage. Solana has suffered from several outages since the beginning of the year, which is creating concerns about the reliability of the blockchain.

Solana has fought hard to maintain the blockchain operations since May 17. On June 1, the network announced it would be shutting down globally. The news has triggered mixed reactions in the crypto community, especially among Ethereum maxis, that are now calling the network “Sqlana.”

Solana was previously touted as an “Ethereum killer” because of the network’s fast speeds and low transaction fees. Last year, SOL became one of the best utility tokens due to adoption by non-fungible token (NFT) and decentralized finance (DeFi) developers. However, the current lack of reliability and regular downtimes has already affected decentralized applications on the network.

The recent outage on the network was caused by a clock drift issue. This issue happens when the on-chain time causes longer block processing times. At first, this issue is not detected by users because it does not directly affect the performance of the blockchain.

One of the main issues caused by the clock drift on the network is the false reflection of the time to create decentralized applications on Solana. While this issue might not be critical to affect the performance of the regular users of the network, the issue remaining unsolved could worsen the issues being faced by the blockchain.

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