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Solana is currently experiencing a downward price trend. At press time, the crypto is selling at $157.73, facing a 4.8% loss within a day. The Solana Price dip came a week later when the coin’s value made its way to the $200 mark. As per a tweet from Solana, the network has an overload that is encouraging denial of service.
A Network Exhaustion on Solana
Solana functions as a blockchain network enabling developers to build decentralized applications. The open-source protocol extends tools that employ security, privacy, and fast execution of transactions. Hence, the network can complete almost 50,000 transactions per second (TPS).
The case was different after Solana said that its network is facing an irregular instability pattern. Anatoly Yakovenko, the platform’s CEO, notes that the Raydium project was performing 300 TPS. Raydium was handling these trades on Solana’s chain during the protocol’s initial decentralized exchange offering event.
Shortly after, Solana took to Twitter, saying that the mainnet network had a transaction overload. As a result, the trades hit a significant rate of 400 TPS. Solana then decided to restart the network and inform the community on how to conduct the process.
The restart procedure was successful, giving Solana protocols a few hours before they could acquire full functionality. On the same day, the SOL native token was trading between highs of $173 to lows of $156.
What Led to SOL’s Price Increase Before?
The digital coin had a continuous upward trend before the network overload incident. As a result, SOL began to trade at $1.40 in January 2021. Currently, SOL is recovering to reach the $160 mark while it ranks as the seventh-largest asset.
Several events made the crypto grow in terms of value and reach an ATH of $165. One of the causes of the price shift came after the release of the Degenerate Ape Academy in August 2021. The platform runs on Solana’s network and is home to 10,000 degenerate ape NFTs. Interestingly, the Degenerate Ape Academy sold all of its NFTs eight minutes after the protocol’s launch.
One NFT could go for 5980 SOL which is equal to more than $1.1 million. In addition, such projects empower Solana’s native token to record an additional price movement.
The ignition hackathon is another factor that made SOL’s prices increase. Hackathons provide a pathway to the innovation of new concepts. As such, developers come together to develop new solutions using the network’s technologies. Solana is hosting such an event, promising developers a $5 million reward and seed funding support.