Why analysts say the Solana outage showed its ‘strength’

Solana’s native token is rising, despite the latest issues with the network. That’s a good thing for the digital asset, according to analysts.

No outage outrage

Solana’s token is up nearly 20% since the blockchain’s network experienced an outage last week, and it could continue to rally.

The digital asset is trading above $110, up from $95 after its outage last Tuesday. It hasn’t traded above $110 since December.

The blockchain’s five-hour outage on Tuesday and subsequent rebound in its price, is “yet another sign of strength,” analysts at crypto research firm Kaiko said in a report on Monday.

Solana’s ability to handle a large amount of transactions is one of its main selling points, analysts at K33 Research said in a report.

The blockchain has also undergone several developments, including introducing 13 new token extensions and offering developers many new tools.

Among these, the feature that allows adding metadata directly to Solana NFTs is causing quite a buzz among developers, DL News reported in February.

Chequered past

Since 2021, Solana has endured seven days with major outages since January 2022, according to Solana’s own data.

In total, there have been 15 days with partial or major outages.

Incidents ranged from partial to complete network outages, caused by everything rom resource exhaustion attacks, and denial-of-service attacks, to bugs within the network’s software.

The last major downtime on the network before the one this month occurred on February 25, 2023. It lasted for nearly two days.

The cause of that interruption was an influx of transactions from a highly sought-after NFT mint, which overwhelmed the network’s capacity.

Last week’s disruption was blamed on a bug that developers had identified shortly before the outage.

The outage started shortly before 10 am London time last Tuesday.

The Solana team deployed a software update that resolved the issue and restarted the network a little after 2:30 pm, DL News reported.

Crypto market movers

• Bitcoin traded around $49,900 on Tuesday after hitting $50,000 for the first time since December 2021 overnight.
• Ethereum added 7.7% since Monday, trading above $2,600.

What we’re reading

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• Binance Founder CZ’s Criminal Sentencing Postponed Until April — Milk Road
• Founders Fund Bets $200 Million On Bitcoin And Ethereum: Report — Milk Road
• DCG Records $210 Million in Q4 Revenue — Unchained

Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.