👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Solana (SOL) Price Drops as the Network Experiences 7-Hour Outage

Published 05/02/2022, 08:26 AM
Updated 05/02/2022, 08:30 AM
Solana (SOL) Price Drops as the Network Experiences 7-Hour Outage
SOL/USD
-

Solana’s NFT minting tool, the ‘Candy Machine’, experienced a number of DDoS attacks on Saturday, April 30th. NFT minting bots sent requests for more than 4 million transactions per second, causing the network to crash. The resulting outage on Solana started on Saturday at 4:30 PM, and lasted until 11:00 PM EST.

Cause of the Crash Still Being Investigated

The enormous flood of transactions is mostly to be blamed on bots raiding the Candy Machine. However, Metaplex, the company behind Solana’s NFT solution, explained that the botting of the Candy Machine was only a partial reason for the crash. The underlying reasons are yet to be investigated, but a botting penalty for the application is set to be deployed soon.

In spite of the clarifications, Solana’s developers are still unsure how the bot attack managed to overcome the network’s active safeguards and obstruct consensus. Experts claim that bot attacks are easier to carry out on Solana because it has lower transaction fees than BTC and ETH.

Solana’s Consensus Criticized in the Wake of Repeated Outages

Solana had already received criticism following last September’s 17-hour outage, which led to important changes, such as new and improved code circulating between the validators. However, the network’s latest crash didn’t see any improvements implemented—it simply continued from where it had left off 7 hours prior. A successful cluster restart was announced later on Saturday night.

SOL regains Most of Its Crash-Related Deficit

The outage resulted in a rapid fall to SOL markets on Saturday. Solana’s native token dropped in value to $83.13 halfway into the system crash, but later recovered to $88.95, resulting in a decrease in price of only 0.3% over the last 24 hours. Nonetheless, Solana (SOL) still experienced a 7% loss for the week.

Continue reading on DailyCoin

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.