Today we reported on the Solana (SOL) network outage. This morning at 11:22 a.m. Dutch time, the Solana network announced that it was down.
The problems now appear to be resolved, but the damage may already be done.
The Solana network is back online
The Solana network restarted at 3:57 p.m. Dutch time. This was done with an update to version 1.17.20, reports the development team.
The team writes that the network outage actually began around 10:53 this morning. This means that Solana had problems for about five hours.
However, it remains unclear what exactly the cause is. The team reports that developers are currently investigating the issue and will release a report on it as soon as possible.
According to Matthew Sigel, head of digital currencies at VanEck, the “Berkley Packet Filter” may have been the reason for the network outage. It is a mechanism for running programs and upgrades on the Solana network.
He adds that it may have been an earlier update, a so-called Solana Improvement Document (SIMD).
SOL price is starting to recover again
The Solana race was hit hard by the incident today. Nevertheless, the price now seems to be recovering quickly.
SOL fell more than 3% today from $96 to $93. At the time of writing, the price is rising back towards $96.
The big question is how much damage to the network’s reputation was caused by this incident. It was the eleventh network failure in just two years. We rarely hear about such network problems from most competitors.
This likely contributed to SOL experiencing a very harsh bear market in 2022 compared to many other cryptocurrencies. The other reason was that FTX was a major investor in the project before the exchange collapsed.
SOL’s deep decline in 2022 also ensured that the price was able to recover strongly in 2023 and rose significantly faster than the competition.
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