Why is Solana dropping? – Transactions fail on SOL blockchain

The crypto market has suffered a minor blow this week, with prices of well-known crypto coins experiencing a decline of between 5 and 10%. One of the bigger losers was Solana, the coin that has been one of the biggest risers so far this year.

The decline may be because the Solana network struggled to process the large number of transactions on the blockchain last week. Yesterday, 75% of transactions did not go through, setting a new negative record for the Solana blockchain.

Will meme crypto on Solana cause a decline?

The popularity of tokens developed on the Solana blockchain has recently created a buzz on the network. That should not be a problem, as Solana was developed to process a large number of transactions in a short time.

The co-founders of Solana have now responded to the problems on the network and indicate that the failed transactions are not due to the widely traded Solana meme coins. There are issues within the network with ‘congestion bugs’ that are currently being worked on by Solana’s developers.

dealing with congestion bugs sucks so much more than total liveness failure. the latter is one and done, bug is identified and patched and chain continues. the former has to go through the full release and test pipeline. shipping fast is impossible 😭😭😭

— toly 🇺🇸 (@aeyakovenko) April 5, 2024

In addition, the real problems for users seem to be not too bad, because most transactions come from bots. Of all failed trades, 95% can be traced back to trading bots. The resulting spam has also caused the congestion bugs mentioned above.

As long as user transactions continue to be approved to a large extent, the impact of the problems on the network on the price will remain limited. However, it does show once again that the Solana network is not problem-free.

In previous years, the Solana network has also had problems, sometimes even being completely offline. In addition, the coin’s image also suffered a blow when it turned out that Sam Bankman-Fried had a large part of FTX’s reserves in Solana.

What will Solana do?

Despite the problems and last week’s decline, the technical indicators for the Solana price are still green. Most moving averages give a buy signal and the momentum around the coin is also at -10.08, which also indicates that it is currently better to buy the coin than sell it.

As long as the problems in the network are not directly noticeable to users, Solana will be able to recover relatively quickly. This does depend on the entire sentiment in the crypto market.

With the Bitcoin halving approaching, all eyes are on the development of the Bitcoin price, which is always important for the development of all other prices. This would also have an impact on some meme coins on the Solana blockchain. Below you will find two tokens that can take maximum advantage of a new crypto bull run next month.

Slothana – Participate in a unique presale

The meme coin Slothana is, as the name suggests, a token developed on the Solana blockchain. The inspiration for the project comes from previous successful Solana meme coins such as SLERF and was launched in a unique way.

You have the option to purchase the tokens before they appear on exchanges and you do this by sending Solana to a Slothana wallet. Once the token is launched, you will receive 10,000 $SLOTH airdropped into your wallet for every Solana you send.

A total of $9 million has already been invested in the token, while little is known about the future of the project. Investors seem to have confidence in a listing on major exchanges, which can have good consequences for the price of the token.

In addition to sending Slothana to the project’s wallet, you can also buy the token directly on the Slothana website. There you can easily connect a wallet and enter how much SOL you want to exchange.

Dogecoin20 – New DOGE token on Ethereum

Solana is emerging as a blockchain for developing tokens, but Ethereum was originally the project on which most tokens were created. The new Dogecoin20 has also used the Ethereum blockchain and the advantages this network offers.

The developers created this token to solve some problems surrounding the original Dogecoin. For example, DOGE is experiencing inflation and still uses Proof-of-Work, which makes the network slow and takes a lot of energy to maintain.

Dogecoin 20 was launched via a presale and it was completely sold out in a short time. You can still buy the token on the project’s website, where more than $10 million has already been invested in the token.

Disclaimer: This article contains insights from independent authors and is not part of the editorial content of BitcoinMagazine.nl. This is not investment advice, please do your own research.