- Solana has witnessed freefall due to the market slump.
- Frequent outages had some market players losing trust in the token.
- SOL dropped to the 8th rank as its overall market cap stood below $45 billion.
Solana’s governance token SOL/USD saw another 15% drop today. That had the alternative coin plunging beneath $90 as its weekly losses amounted to 49%. That comes as the SOL blockchain experiences massive network congestion problems. Meanwhile, SOL has seen a free fall as the global market slumped. For now, the alt stays about 60% lower from its 2021 November ATH (CoinGape report).
Two Days of Instability
Solana network disappointed investors and traders amid the ecosystem’s instability within the last two days. Engineers published a notice on SOL’s official website on 22 January, noting that Solana’s platform struggles with network congestions. The past 24 hours proved that the system needs improvements to meet users’ demands and support complex transactions.
Platform in Full Operation
Solana network appears in operation again on 24 January; today. However, are the damages done? Remember, frequent outages in the SOL platform have some investors losing trust as far as the network is concerned.
Such developments had other ETH layer1 platforms such as BSC and Fantom gathering momentum. Boolean Fund CEO and cryptocurrency investors Mark Jeffery stated Solana saw about six outages within three months. The executive said he lost faith in Solana as it became another ESO in the game. Moreover, Jeffery added that the competition remains between Terra, Avalanche, Binance Smart Chain, Fantom, and Ethereum.
SOL Market Share Plunges
Solana seems to lose the Ethereum killer narrative amid frequent network outages. The alt has seen its DeFi TVL share plummeting. That comes as DeFi investors opt for alternatives such as Terra (LUNA), Fantom (FTM), and Avalanche (AVAX).
Moreover, Solana slipped to rank 8th as its market cap hovers beneath $45 billion (data from Coinmarketcap). For now, developers plan more platform fixes in the coming future. Engineers revealed that they would dedicate the next 12 weeks to network improvements.
Feel free to share this article with other market participants.
Editorial credit: davide bonaldo / shutterstock.com
