After an increase of 350% over one month, Solana stumbles and registers 10% of decline, quoting at 144 dollars. However, many projects are emerging on the blockchain.
Solana has had a hectic summer. The SOL was one of the first tokens in the cryptocurrency market to signal the beginnings of a new altseason. The numbers speak for themselves. Between August 7 and September 7, Solana’s price soared by 350%.
The rise looked set to continue for the native blockchain token touted as a rising Ethereum alternative. Spending the 200 dollars, the SOL was announced at highs. During the last 3 weeks, institutional investors were betting largely on this scenario.
A failure that highlights weaknesses
But now, the beautiful mechanics suddenly seized up. Investors are not involved. The Solana blockchain has been overtaken by technology. A failure paralyzed the network for 17 hours. The cause of this incident is identified.
The founder of Solana, Anatoly Yakovenko, specified that the setbacks resulted from bots flooding the network as part of an IDO (initial DEX offering). This operation aimed to finance an exchange in development on Solana, Grape.
For a network whose commercial advantage is scalability, this failure goes badly and seems to contradict the promises of its creators. Yakovenko puts it into perspective, however, believing that these are just a few bugs to fix.
And it is better to experience a mishap today rather than in the future when Solana will have a billion users, he added. The blockchain is still far from having so many users on its network.
It is true, however, that new projects are emerging on Solana, some of which have succeeded in raising funds of several million dollars. And that is a positive signal for Solana and for investors.
Like Cardano, Solana must prove herself
The growth of its ecosystem is what Ethereum owes today its success and the explosion of its capitalization. To claim rival status, Solana must also attract applications with its technology, and preferably must-haves.
Parrot Protocol may claim this title. So far, the lending and exchange platform has raised $ 69 million through a DEX offering. But to compete with the Maker protocol on Ethereum, the road will be long.
But many other projects are being launched on Solana and its launchpads, including Solanium, Boca Chica, and Solstarter. One example is MatrixETF, a decentralized ETF platform, which starts on Solanium.
After the euphoria, investors will need objective signals, as with Cardano. Since the failure, the SOL has been receding. On CoinMarketCap, the token is down 11.6% over 24 hours to $ 142.84.