Fintech and Web3 experts are ‘losing trust’ in Solana over unstable network

The decentralized finance (DeFi) Solana (SOL) network is among the most monitored cryptocurrency projects as the development team works to position it as an Ethereum (ETH) competitor. However, Solana’s growth is threatened by network-related issues like frequent outages. 

In this line, about 33% of industry experts have revealed that they are losing trust with the Solana team mainly due to the network outage issue, a report by Finder shared with Finbold on October 27 indicates. 

Solana growth trajectory 

Despite the concerns, 37% of the 55 fintech and Web3 specialists indicated they still have full trust in Solana, while 30% exhibited optimism the network challenges are part of the growth trajectory. 

“SOL is in recovery mode. <…> Despite some well publicized technical failures [and] network outages it has a high reputation in the scientific community. Its problems will be short term and have been shared with many other players. It has a potentially positive longer term future,” said University of Brighton senior lecturer Paul Levy. 

Notably, Solana’s primary cause of outages has not been identified, a factor that divided the experts. Indeed, 22% of the panel stated that the outages are due to low-cost transactions, while the rest cited a bigger issue like centralization.

“SOL has one of the strongest communities in the game. <…>We have seen users be burned in the worst ways, typically large amounts of centralisation are at the heart of the problem,” said MetaTope co-founder Walker Holmes. 

Notably, as reported by Finbold, Solana continues to record significant growth, with Solana-based transactions hitting over 100 billion.

Impact of network outages 

However, the network outage challenges have emerged as an essential pain point for the blockchain, with Anatoly Yakovenko, one of the co-founders of Solana, terming the situation as a ‘curse.’ Despite the outages, the network maintains that Solana’s integrity remains intact.  

In 2022 alone, the network has suffered at least six significant outages. The last incident was recorded on October 1, lasting over six hours. 

Overall, the experts opined that Solana will likely trade at $35 by the end of 2022. By press time, the asset was trading at $31, with gains of about 1.5% in the last 24 hours. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.