Solana (SOL) network, a top-tier layer one blockchain with more than $1.67 billion in Total Value Locked (TVL) and over $2.2 billion in stablecoins market capitalization, has experienced an unexpected outage for the past hour leading to this publication. According to on-chain data provided by Solanabeach Explorer, the last block to be confirmed was about 52 minutes ago, meaning no Solana-based transactions have been going through.
Meanwhile, Solana’s team of engineers has acknowledged the outage and notified the community that an investigation is underway to ensure a fast solution. Furthermore, there is no smart contract on the Solana network that has been working during the outage, thus unconvincing all its web3 projects like Orca DEX, and Solend lending, among others.
Solana Forms a Downtime Habit
Solana network has experienced similar outages in the past two years, which has raised concerns about its ability to handle mainstream adoption of smart contracts, web3 projects, and digital assets. The Solana team has in the past attributed the periodic outages to bugs in durable nonce transaction features. Nevertheless, at no time has the downtime caused a loss of funds, thus still retaining the majority of its supporters.
Market Impact on the Solana Network Outage
The outage of the Solana network has triggered bearish sentiment on the SOL coin, which has dropped more than 3 percent in the past few hours to trade below the crucial support level of around $94. If the issue is not resolved as fast as possible, the SOL price is likely to drop toward the support level of around $80, thus increasing the chances of further market correction.