Solana (SOL) Still Attract Investors despite Recent Downtime

Briefly –

  • Solana network encountered a massive outage in the past week, initially explained as resource exhaustion.
  • Solana Foundation stated that service attack denial caused the platform to stall.
  • Solana appears to attract investor interest regardless of the last week’s roadblock as the asset recorded investment inflows of around $5 million.

Solana encountered a massive obstacle last week. The network had to go offline for nearly 18 hours. However, the alternative token seems to attract increased investor interested regardless of the outage. The institutional inflows amounting to $5 million over the previous week reflect that.

Solana Explains the Reason behind the Outage

Solana Foundation explained that the rare occurrence came after increased incoming transactions overwhelmed the network. The network had to stall after reaching more than 400K transactions each second.

The network saw the flooding during a DEX offering launch hosted in Raydium, a Solana decentralized finance protocol. The associated transaction overburdened the ecosystem’s nodes, resulting in memory overuse, thus the crash. With that, SOL’s network could not produce blocks as it failed to attain consensus beyond the blockchain status.

The report by the Solana Foundation revealed that a service denial attack caused the service stall. Meanwhile, blockchain validators restarted and updated the platform, creating a hard fork update from the previously confirmed block.

The plan to facilitate Solana network restart needed 80% of blockchain validators to revive the network again after nearly 14 hours. The report highlighted that this’s a rare event, and the foundation plans to introduce sturdy technical autopsy in the weeks to come.

Meanwhile, SOL’s investment products recorded $4.8 million inflows last week regardless of the setback. CoinShares reports suggest that the attack did not discourage market players, showing they saw the issue as a minimal obstacle and not an inherent hurdle.

SOL Slides near Support

Solana saw its price falling since last week’s network attack, and it seems to search for support. The altcoin has its price moves in a constricted range but might secure a foothold nearby. The 4hr chart shows the alt’s price hovering in a descending channel. The prevailing pattern depicts that Solana consolidates after the 9 September ATH.

Though technicals indicate bearish sentiment, SOL can secure the closest support near 200 four-hr SMA at $128. The following defense line lies at the channel’s bottom border at $120 near the 50% FIB retracement.

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