solana (SOL) has been declining over the last 24 hours following market factors and network issues due to the influx of users. The asset lost 7.72% today and 6% this week, erasing the gains made by the market’s recovery efforts.
Once upon a time, other weekly earnings crypto- Solana, which outperforms its assets, is recording sharp liquidations as sentiment declines in the short term.
Solana’s Network Congestion
SOL has seen its recent gains decline after network errors continue to plague the blockchain. The number of failed transactions on the network has increased in recent weeks, reaching up to 70% of unvoted transactions. The high failure rate creates congestion in social media spaces, triggering user complaints.
Solana recorded a large increase in network usage starting in Q4 2024, leading to a significant price movement. Trading bots have been associated with failed transactions as many are abandoned before entering the chain. Mert Mumtaz from Helius Labs explained that this metric can be misleading for 90% of users.
Anatoly Yakovenko touched upon the issue on X and stated that error problems will be detected and resolved.
“Dealing with congestion errors is much worse than a total liveness error. the second is one and done, the bug is identified and patched and the chain continues. The first one has to go through the full release and testing pipeline. fast shipping is impossible.”
NEWS CONTINUES BELOW
Solana Foundation Strategy Fellow Austin Federa said the network is being tested with an influx of traffic with bug fixes expected within the next week. stated.
The Solana network is, once again, being battle tested with a huge influx of traffic. Bug fixes are rolling out over the next week, and things will start to improve.
But there is no silver bullet and no “finished” – we expect demand will continue to increase, which will require…
—Austin Federa | 🇺🇸 (@Austin_Federa) April 5, 2024
“Scaling is like this, it is not a one-time operation. However, the diverse core group that contributes to this network has demonstrated time and time again that Solana can actually scale.” He stated as follows.
In another development, FTX’s Bankruptcy Estate sold almost two-thirds of its SOL tokens at a discount. The firm sold between 25 million and 30 million SOL tokens to Galaxy and Pantera Capital.
