Solana Blockchain Experiences First Outage of the Year, Heightening Market Anxiety

Solana (SOL) network, a leading layer one blockchain with a Total Value Locked (TVL) exceeding $1.67 billion and a stablecoins market capitalization of over $2.2 billion, is currently facing an unexpected outage. The outage has been ongoing for the past hour, resulting in a halt of Solana-based transactions. On-chain data from Solanabeach Explorer reveals that the last confirmed block was approximately 52 minutes ago.

The Solana team of engineers has acknowledged the outage and assured the community that they are actively investigating the issue to find a swift resolution. During the outage, no smart contracts on the Solana network were functioning, impacting various web3 projects such as Orca DEX and Solend lending.

Engineers from different sectors of the ecosystem are currently investigating the outage on the mainnet-beta. Updates regarding the progress of the investigation will be provided as more information becomes available.

This is not the first time the Solana network has experienced such outages. Over the past two years, similar incidents have raised concerns about the network’s ability to handle widespread adoption of smart contracts, web3 projects, and digital assets. The Solana team has previously attributed these periodic outages to bugs in durable nonce transaction features. Despite these challenges, no funds have been lost during the downtime, allowing the network to maintain its strong support base.

The outage of the Solana network has had a negative impact on the SOL coin, leading to a decline of more than 3 percent in the past few hours. The coin is now trading below the crucial support level of approximately $94. If the issue is not resolved promptly, the SOL price may further drop towards the support level of around $80, increasing the likelihood of a market correction.

Tags: Blockchain