Solana Suffers Outage And Tanks 16%. What’s Next?
25 Enero 2022 - 02:00PM
NEWSBTC
The past few days may have weakened the image of Solana (SOL). High
levels of network congestion brought a new outage to the network
and SOL fell the hardest amongst the top 20 cryptocurrencies amidst
the market crash. Here’s What Happened Last week, it was reported
that Solana’s network was clogged, resulting in many failing
transactions and DeFi users not being able to adjust their
collateral positions to reflect the new valuation of the coin
amidst the crypto market fall. In a Solana blog post, the team
explained that the incident experienced by validators was due to
excessive duplicate transactions sent by bots and “related to
issues previously identified that engineers have been working to
improve and resolve”. This is not the first outage for the Solana
network. The 18-hour network outage in September 2021 caused by
heavy transaction traffic remains the harshest one. And just this
month, this has been the second, following an outage on January 4.
Related Reading | Algorand, Solana, And More Lead List Of
Biggest Losing Altcoins Liquidated Solana Users The DeFi lending
protocol built on Solana, Solend, stated that the market crash
“caused many accounts to become liquidatable and created many
profitable arbitrage opportunities.” SOL price dramatically
plummeted as the whole crypto market tumbled, thus users with
collateral needed to increase their position in order to not have
their assets liquidated. Position liquidators receive a bounty from
liquidated positions, so when scenarios like this happen they “race
to close eligible positions”, as Laine the blockchain business that
operates validators on Solana explained. This is the reason behind
bots, created to help liquidators win the race, but for this, “they
submit the same transaction dozens or hundreds of times”. This
turns into a mass of duplicated transactions that need to be
verified by validators. There was a massive quantity of attempts by
Solend users trying to deposit and repay to avoid liquidations, but
all they met was network congestion. “This large load caused
validators to falter, especially since they were not filtering out
duplicate transactions optimally, wasting precious compute. The
thousands of duplicate bot transactions also drowned out legitimate
user transactions.” Solend further stated, “In addition, there was
some erroneous volatility on the Pyth price feed, which caused
wrongful liquidations (e.g. some users supplying mSOL and borrowing
SOL were liquidated due to prices moving out of sync).” Solend
later announced that they are working to reconcile problems
encountered by users. The platform will “Reimburse 100% of the
penalty for users liquidated due to abnormal volatility on the SOL
feed” and “Reimburse 50% of the penalty for other liquidations.”
SOL Price Tanked SOL is now down 42% in the last week and decreased
dramatically from $144 on early Thursday to around $80 on Monday.
It has now recovered slightly to $92,42 at the time of writing.
Consequently, SOL lost its position as the 7th-largest coin to XRP,
and overall saw the deepest pool of blood among the top 20
cryptocurrencies, with many users left wondering if their network
is worth the risk. Related Reading | Solana Could Flip
Ethereum To Become “Visa Of Crypto,” New Study By Bank Of America
Shows What’s Next For SOL? Solana released the v1.8.14 update to
“mitigate the worst effects of this issue” and alleged that
“engineers have been working to improve and resolve” the issues
related to network congestion starting with the 1.8 release. More
updates to implement v1.9 are expected over the following 8 to 12
weeks. “These forthcoming releases are aimed at improving the state
of the network, with more improvements expected to roll out in the
next 8-12 weeks. Many of these features are currently live on
Testnet, where they are being rigorously tested.” Many users didn’t
find relief in the answers from the Solana-supporter CEOs and its
co-founder Anatoly Yakovenko and called them out for allegedly
doing false claims and dishonest wordplay. The network might be in
a key point for its future growth. The new updates need to scale
with the demand and provide trust to the disappointed users.
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