Since the 2021 hype, the Solana network has been known for network crashes. Despite these network outages, investors were impressed by the network’s extremely fast transaction speeds, and the SOL price skyrocketed. In 2023, the network went offline once more. Is it still worthwhile to invest in Solana after the FTX scandal and the recent crashes? How high can Solana go? Let’s take a look at it in more detail.
What happened to the Solana network?
Solana has been known for its frequent network crashes since its hype in the second half of 2022. The network went down for a few hours repeatedly. Although no tokens were lost by investors, the network was unavailable to users for some time.
The network went down again on February 25. The network was down for over 24 hours. A bug was to blame for this outage. These defaults are also nothing new in a bear market. In 2022 alone, Solana suffered seven network outages.
Why does the Solana network keep failing?
The Solana network has become infamous for its outages. These failures are caused in part by the blockchain’s design. Solana employs Proof-of-History, an innovative consensus mechanism that makes the network extremely fast and scalable. However, this has some drawbacks. When the transaction load is high, the network is prone to errors due to proof of history.
Furthermore, the network is designed in such a way that if there is a network fault, Solana goes offline immediately. That is why there were so many failures in the previous year, as well as the first failure within the first two months of the new year 2023.
The Solana network is a high-performance blockchain platform built to support large-scale decentralized applications with fast transaction processing speeds. Despite its advanced technology, the Solana network is susceptible to network failure. Several factors can contribute to network instability or failure, which can have an impact on the platform’s reliability and usability. Some of the most common causes of Solana network failure are as follows:
Congestion in the Network:
Network congestion is one of the most common causes of network failure in Solana. When the number of transactions or requests on the network exceeds the network’s capacity, bottleneck forms and processing speeds slow. This can result in lengthy wait times, exorbitant fees, and unconfirmed transactions. In extreme cases, the network may become unresponsive and transactions may fail, resulting in network downtime.
Software bugs:
The Solana protocol, like any other software, can have bugs or glitches that cause network instability or failure. These bugs can occur as a result of coding errors, design flaws, or unexpected interactions between platform components. Bugs can cause critical nodes to fail or become unresponsive in some cases, resulting in a network-wide failure.
Failure of a node:
Nodes are essential components of the Solana network, as they validate transactions and maintain network consensus. If a node fails or goes offline, the entire network can be disrupted, resulting in a loss of consensus, network downtime, or even a network split. Failure of a node can occur for a variety of reasons, including hardware failure, software bugs, or cyber-attacks.
Cyber Attacks:
Cyber attacks pose a significant risk to any blockchain platform, including Solana. Attackers can try to disrupt the network by launching DDoS attacks, flooding it with traffic, or exploiting vulnerabilities in the Solana software. These attacks can cause network downtime, financial loss, and other security risks.
Governance Issues:
A blockchain platform’s success and stability are dependent on its governance. Governance issues in Solana can arise as a result of poor decision-making, a lack of community participation, or disagreements among key stakeholders. Governance issues can cause network instability, loss of trust, or even a network fork.
Hardware Failure:
Hard drives, servers, and network equipment can fail or malfunction, resulting in network downtime or failure. This can occur for a variety of reasons, including normal wear and tear, power outages, or physical damage.
In conclusion, the causes of Solana network failure are many, and the platform’s reliability depends on mitigating these risks through robust network design, security measures, and governance practices. While the Solana network has shown great promise in terms of speed and scalability, addressing these risks and ensuring the platform’s long-term stability and success is critical.
How high can Solana go?
How high can Solana go: SOL/USD Weekly chart showing the price – GoCharting
The SOL token lost more than 85% of its value during the bear market. Solana’s losses are thus comparable to those of other Altcoins. Despite this, Solana has remained in the top ten cryptocurrencies in terms of market capitalization. Solana is now a household name in the cryptocurrency industry.
In a bullish March market, the SOL price could rise sharply again.
If the Bitcoin price rises above the $25,000 resistance level, and thus towards $30,000, the Solana price could rise dramatically, and the forecast would be very positive.
However, even if the Bitcoin price rises only slightly in the coming weeks, the Solana price could rise by 10 to 20%. We believe that smaller increases or decreases in the coming weeks are less likely. As a result, the Solana forecast is slight to moderately optimistic. As a result, we anticipate a Solana prediction of 25 to 35 dollars by the end of March 2023.
Is it still worthwhile to invest in the SOL token?
Actually, Solana wanted to make sure that the frequent failures of 2022 did not happen again this year. Again, this does not reflect well on the network. In addition, the FTX crash has harmed the company’s reputation. Because Solana had numerous connections to Sam Bankman-businesses.
Although Solana intends to build a failover system in the future, trust in the network is currently low. An investment in the SOL token is therefore currently even more speculative than before. However, if the hype returns, the price could skyrocket in the short and medium term. However, the risk associated with the SOL token does not diminish.
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Source: https://cryptoticker.io/en/how-high-can-solana-go/