Solana suffered a colossal crash as the blockchain went offline for hours – How it affected SOL price?
As Solana blockchain experienced intermittent downtime after the attack, top analyst Elliot Wainman explains the reasons for it and analyses how it would affect SOL price.
According to the trader, Solana, one of the biggest DeFi chains by value locked, suffered network outages on Tuesday. The Solana team first alerted users to the issue on Twitter saying the network had been “experiencing intermittent instability”.
In particular, the Solana team said that resource exhaustion in the network was causing a denial of service, engineers were working towards a resolution. Validators were preparing for a potential restart as the network remained idle for more than 7 hours.
“This is exactly what people have been fearing, which is that this young exciting blockchain that’s promising to solve all of the pervasive issues over the course of the history of the blockchain industry, all of a sudden just changing the variables, making the stuff super fast is really the issue. Every time you add new variables or change underlying variables, you risk new attack vectors and this is exactly what we’re seeing,”
Not only that, but Wainman also points out that although Ethereum is expensive, it has never stopped working. In particular, on the same day, someone has tried to attack Ethereum too, but they were unsuccessful.
“This is where you start to see the difference literally at the exact same time. You’re seeing the difference between Ethereum’s actual reaction to what’s going on when an attack happens and Solana’s.”
In terms of SOL price, according to the trader, SOL experienced some sharp price fluctuations, falling more than 15% after the Solana blockchain network went down and then recouping much of those losses.
“I see today’s price action indeed as a mix between standard profit-taking and impact of recent technical events.” the trader says.