Earlier this week, ministers from the world's top economies, the G7, called for greater speed as financial watchdogs introduce comprehensive crypto regulation. This comes shortly after Terra's demise saw several crypto users suffer considerable losses in the space of a week. G7 Contacts FSB to Hurry Things Up The stablecoin failed to maintain its dollar peg and crashed as low as $0.07, with sister token LUNA not far behind. This created a ripple effect as general market anxiety destabilized even…
Solana Faces Intermittent Instability as its user’s complaints show that transaction blocks are not processing on the network. The last transaction block recorded was 5 hours ago, based on SolScan and Solana Beach block explorers.
The project is a platform for dApps created in Solana Labs based in San Francisco. High scalability and low transaction fees are the most attractive features of the project.
Addressing the Technical Issue
Solana Foundation has confirmed the claims on Twitter. The message reads that Solana mainnet-beta is going through intermittent instability. The instability, they said, began 45 minutes before the official announcement came. Notably, engineers are investigating the issue to come up with a solution fast.
The problem facing the network is resource exhaustion that creates a denial of service. Consequently, third parties that validate transactions on the blockchain are getting ready. They need to be prepared in case solving the issue is through a system restart.
Unlike other cryptocurrencies, Solana uses a Proof of History method as a decentralized clock for the system. On Proof of History, you can create historical records proving an event occurs over a specific time. Such an algorithm is a high-frequency Verifiable Delay Function. Hence, it requires a certain number of sequential steps for evaluation.
The evaluated transaction gets a unique hash and a count. Both of which can be publicly and effectively verified. There is also a cryptographic clock in every node that tracks the time and events on the network. The functionality allows high throughput and efficiency on the web.
Solana Plunges Slightly
The crypto has been soaring since the year started. Solana eliminates many typical problems previously experienced by blockchain technology. It shows a new transaction structure and a more efficient consensus mechanism. The attention it has been gathering makes it a strong Bitcoin and Ethereum competitor.
In January 2021, its price rose from $1.50 to above $200 by September. It currently occupies the sixth position by crypto market capitalization.
For the past month, the crypto market has been highly volatile with a lot of pressure. Bitcoin and Ethereum have shed over 13% each. Solana has followed suit with a 10.29% over the past week. Currently, it is trading at $155 from the $210 levels.
In the recent collapse, crypto investors worried about the current volatility of the digital token cart. The recent rumors about the market collapse are adding to their troubles.
Where is SOL Heading?
As Solana Faces Intermittent Instability, its price continues to consolidate. Meanwhile, Investors anticipate SOL will discover necessary support. The support is at the bottom boundary of the governing technical pattern at $150. The altcoin slices below that level coincide with the break-out line suggested by the Momentum Reversal Indicator (MRI).
Should Solana’s price continue to suffer selling pressure, the MRI should point at another line of defense at $137.