Solana, dubbed as the Ethereum killer for most of 2021, has recently suffered network outages and performance issues.
It had one of its slowest periods last week due to network congestion caused by the crypto market fall, which resulted in rejected transactions and stopped withdrawals on the network. Solana has had six outages this month alone, in addition to the many more that occurred at the close of last year.
Solana’s power outage
The most recent interruption lasted over 48 hours and resulted in forced liquidations of cash borrowed through lending sites by several DeFi dealers. Many traders and aficionados have been understandably dissatisfied as a result of these growing issues, particularly at a time when quick transactions are required to unwind hazardous positions while the market is in a slump.
However, Sam-Bankman Fried, the CEO of cryptocurrency exchange FTX, does not believe that these congestion difficulties will have a significant impact on the network’s long-term performance. The crypto millionaire stated on Twitter that Solana continues to outperform rival blockchains because to its high throughput.
4) As far as I can tell, during the week when it’s had performance issues, and if you exclude all of the voting transactions from the TPS……it’s still processed more transactions than all other major blockchains.Combined.— SBF (@SBF_FTX) January 25, 2022
Despite the fact that the network’s transaction per second (TPS) count has decreased drastically from the previously reported 50,000, the FTX CEO remains optimistic about the network because other blockchains are much slower.
He did say, though, that the network “has more work to do” if it wants to remain a favorite among traders and investors. The network should concentrate on enhancing “the throughput of the system, and the efficiency, to scale with the demand,” according to SBF, because demand from transactions on Solana has now met the supply.
After the most recent outage, Solana’s creators said that they have upgraded to version 1.8.14, “which will seek to alleviate the worst consequences of this issue,” with further enhancements coming in the following 8-12 weeks.
Solana has lately demonstrated strong fundamentals, with consecutive weeks of fund inflows at a time when both Bitcoin and Ethereum have seen the reverse. NFL player Ndamukong Suh recently mentioned this on Twitter, adding that the network’s simplicity of use, community, speed and safety are all advantages in its favor, particularly when compared to Ethereum.
According to Larry Cermark, Vice-President of Research at The Block, this story may soon alter. In a Twitter reply to SBF, he stated that the most recent outage was particularly traumatic due to its timing, writing,
“If I get liquidated because I can’t top up my position due to degraded performance, it’s hard to see me trusting it again for those kinds of transactions.”