Solana traders may see SOL’s darker side and this latest setback is to blame

Provident Align blockchain Binance Action

03.10.2022 - 14:33

Reading now: 223

ambcrypto.com:

On 1 October, Solana [SOL] announced that it suffered another instance of network downtime. The announcement added to the tally of already existing instances where Solana reported network outages in the past.

Solana is not new to reports of network downtime. According to the recent announcement, the network outage affected its ability to process transactions. This incident forced developers to restart the network.

<p lang=«en» dir=«ltr» xml:lang=«en»>The Solana network is experiencing an outage and not processing transactions. Developers across the ecosystem are working on diagnosing the issue and to restart the network. More information will be provided as it becomes available.

— Solana Status (@SolanaStatus) October 1, 2022

Solana’s previous network downtime incidents dented its reputation, making it less attractive to investors and potential users. However, the network has been working towards rebuilding its reputation but the latest incident added more salt to a past injury.

According to Solana’s follow-up update, validators managed to successfully restart the mainnet beta network. Although Solana managed to restore operations, the biggest challenge that the network faced was how these downtime episodes affected its ability to attract users.

Some dapps and crypto projects looking for a host blockchain might not prioritize Solana as one of their top options due to the downtime. This means such incidents can affect a network’s potential long-term growth and prospects. In addition, network downtime incidents have historically had a negative impact on SOL’s price action.

SOL delivered a bearish performance after previous reports of network downtime. It dropped by slightly over 8% since 1 September when the latest network outage