Solana (SOL) price has suffered a near 15% year low loss when developers shut down the blockchain following a problem in the durable nonce transactions feature halted block production for over 4 hours.
Users seemed to be losing faith in Solana after it experience problems for the ninth time in a year. Furthermore, as all Solana applications and features cease to operate as a result of the shutdown, people begin to question the decentralized nature of the platform.
Solana price plunges amid string of problems
Solana considered an “Ethereum killer” for handling large transactions on its blockchain at a lower cost, appears to be failing as it has its second outage in a month and ninth outage in less than a year. The Solana blockchain was offline for about 7 hours in early May. The most recent outage lasted over 4 hours, with validators forcing a Mainnet Beta restart at 9 p.m. UTC after upgrading to v1.10.23.
The series of outages and degraded performance on the Solana blockchain is pushing the prices to decline further. In fact, the Solana blockchain clock is 30 minutes behind real-world time because of the longer-than-normal block times. Moreover, Solana has also been plagued by issues related to non-fungible token (NFT) minting.
The SOL price has dropped to $38.36 in the last 24 hours, its lowest level since August 2021. If prices continue to fall below the critical $38 support level, it could push SOL to fall below $33, the next support level. The technicals are also not looking good, with the RSI and moving averages indicating that the price of Solana will continue to tumble.
Solana registered a liquidation of about $7 million in the last 24 hours. Binance, OKX, and Bitfinix all recorded liquidations of mostly long positions.
Blockchain suffers criticism from community
The recent global shutdown of the Solana blockchain sparked a backlash from the community. Moreover, several Reddit users have questioned the blockchain’s decentralized nature, as the impact was seen globally on Solana-related applications. Many users on Twitter are planning to move away from the project.