The Solana native crypto (SOL) has continued to nosedive as its blockchain continues to face major network congestion issues. Today it has dipped another 6% amid congestion issues over the weekend.
SOL is currently trading at $ 88.25% with a trading volume of $ 2.9 down to 12.5% in the last 24 hours.
According to the current trend where all the major cryptocurrencies are going red, things might get worse for Solana if the congestion issues keep on cropping up.
What is Solana (SOL)?
Solana is a decentralized open-source project that depends on Blockchain technology to provide solutions for Decentralized finance (DeFi) and SOL is its native token.
The SOL token has been dropped greatly amid the current bloodbath of major cryptocurrencies like Bitcoin and Ethereum.
The sharp drop in Solana price
During this huge crypto market rout, Solana seems to be in the lead after experiencing 48 hours of network instability over the weekend, to an extent of disappointing the traders and investors. However, the Engineers posted a notice on the Solana website on Saturday, 22 January 2022 stating:
‘’Solana mainnet beta is experiencing high levels of network congestion. The last 24 hours have shown these systems need to be improved to meet the demands of users and support the more complex transactions now common on the network.’’
However, after working on the systems over the weekend, today the systems are in full operation. According to a comment on their website, the Solana team thanked the panel that helped to debug the network issues and also the Solana lab team who didn’t sleep for 48 hours.
This frequent network outage has highly contributed to the current bearish situation and resulted to trust issues among investors. Traders no longer trust the platform; something that has given its Ehereum Layer-1 competitors like BSC and Fantom an upper hand.
Mark Jeffrey, Boolean Fund founder, and Crypto investor, said:
‘’Another day, another 48-hour Solana outage. This is like the sixth time this has happened in 3 months. I have zero faith in it now. It is the new EOS. The fight is now between ETH, BSC, Fantom, Avalanche, and Terra.’’
Solana to up its game as traders goes for alternatives
In the midst of all this, questions are arising as to whether Solana the Ethereum competitor in terms of DeFi TVL has 50%. Current data shows that DeFi traders are going for those platforms with low fees; for example Avalanche, Fantom, Terra, and many more.
Fantom is currently the second largest network in terms of DeFi TVL after Ethereum as Solana slips to the sixth position with $7.7 billion DeFi TVL according to DeFiLlama.