Solana (SOL) showed a disappointing performance with a nearly 40% decline this morning from a record all -time high (ATH), $ 260.10 on Nov. 6th.
Even so, activity on the Solana network is still showing strengthening. For the record, as much as 80.78% of the SOL supply is owned by 173 wallets.
Indirectly, this shows that the number of transactions, wallets, and transaction costs are at the highest level even though the price of SOL is tormenting the souls of its investors.
What happen?
Not sure where its main contributors are other than the decline in the price of Bitcoin (BTC), but it could be linked to the incidence of day -long DDOS attacks, causing the network to face transaction processing issues.
It is understood that the Solana network is 'crowded' with dumping of transactions, causing some transactions made by its users to fail and become slow.
Solana co -founder Raj Gokal explained the truth through a series of tweets on Twitter:
if your timeline is telling you that @solana went down yesterday, consider stepping out of your bubble
- Raj Gokal (@rajgokal) December 11, 2021
SolChicks explained the error stemmed from NFT Chicks ’initial DEX offering (IDO) that took place on December 13th.
It is said around 10,000 users tried to buy NFT Chicks until Solana’s DEX Raydium was interrupted. With the guarantee that Solana's network is able to accommodate 50,000 transactions per second (TPS), on the other hand on that day Solana can only process 1,000 TPS.
So, it’s no wonder why Solana was criticized on the day of the incident. Aduhai.
Meanwhile, Solana Ventures has just announced a collaboration with Forte and Griffin Gaming Partners to invest $ 150 million in Web3 games developed on the Solana network.
At the time of writing the article, SOL was trading at $ 159.55, up over 3% in 24 hours.
