According to crypto analyst Ekta Mourya, Solana (SOL) consolidation continues, but analysts are convinced that the altcoin project still has upside potential.
Altcoin fails to recover disruption-triggered dip, recovery expected
cryptocoin.com As you can follow from their news, Solana’s (SOL) on-chain activity has exploded in the last four months, and the altcoin has gained over 118% in the last 30 days, reaching its ATH of $214.94. However, afterward, it dropped nearly 34% from its all-time high to $140. In short, since the network-wide outage on September 15, the altcoin price has not recovered. Solana made the following announcement on Twitter.
“The Solana Mainnet Beta has experienced a massive increase in processing load reaching 400,000 TPS. These transactions filled the transaction queue and not prioritizing network-critical messaging caused the network to start forking.”
Fans conclude that one of the key triggers in Solana (SOL)’s consolidation was the outage that lasted more than 15 hours. According to analyst Ekta Mourya, traders in the crypto community were initially drawn to the Solana network for its low-cost transactions and faster transaction times, but the downtime highlighted the need for better network infrastructure and greater localization.
Mira Christanto, Senior research analyst at crypto research and data platform Messari, informed users that the Blockchain protocol will not validate transactions if 33% of the Solana network is down. Additionally, Ekta Mourya notes that this is a cause for concern for traders who emphasize “decentralization”, as 45% of Solana’s (SOL) validators are hosted in only two data centers.
Leading analyst on crypto Twitter alias Pentosh1 says traders trying to catch the knife are taking losses
Interestingly, a single server in an Amazon datacenter (Amazon-02) has enough stakes in the Solana network to act as a “kill switch”. Amazon-02 currently accounts for 37.45% of Solana staked. Despite the ongoing consolidation, cryptocurrency analyst and trader AltcoinSherpa announced that it has decided to buy SOL once it reaches $130. At the time of writing, Solana (SOL) was trading at $140.12.
Pentosh1, the leading pseudonymous analyst and trader on crypto Twitter, has observed that traders trying to catch the knife are taking losses. The analyst is surprised by the recovery in Solana (SOL) price after this rapid decline.
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