Solana Defies Expectations, Soars Amid Outage

Rumours in the cryptocurrency space are definitely deja-vu.

Headlines on Solana were going crazy yesterday...

The realm of cryptocurrency often defies expectations, and this week has been no different.

Contrary to popular perception, the price of Solana (SOL) soared on the day when the network suffered its first outage in nearly a year.

On 6th February, the Solana network witnessed a downtime of five hours due to a bug as it went back online thereafter.

Engineers from across the ecosystem are investigating. Core contributors are working on a root cause report, which will be made available once complete.

 

Source: X

Transactions froze around 09:52 UTC and resumed around 15:00 UTC.

Solana suffered the last outage on 25th February which lasted nearly a day.

On 6th February, SOL’s price briefly dropped below $95 but quickly soared around $96.5.

 

Source: SOL/USDT, BitDelta/TradingView

In fact, SOL’s price soared above $97.5 the very next day, 7th February.

Since the last outage in February 2023, Solana’s DeFi protocols have witnessed a surge in activity. Its price has since risen nearly 4 times from around $25 to $95, thanks to a series of airdrops over the last few months. Users accessing Solana-based DeFi protocols acquired newly circulated tokens for free during these airdrops worth hundreds of millions of dollars.

Solana has suffered multiple outages in past years due to congestions and spam events. Solana co-founder Anatoly Yakovenko called these outages the network’s “curse” in an interview with Real Vision co-founder Raoul Pal.

However, there has been a remarkable improvement in the Solana network and network outages have reduced significantly.