Solana, the famed high-performance blockchain and third-largest crypto by market capitalization, has nosedived by 12% following reports of its blockchain network suffering its second outage in the last month.
Solana Suffers Second Outage in a Month
On-chain data showed that the Solana blockchain did not produce new blocks for five hours on Wednesday, June 1. As a result, all of its applications on the Solana chain were forced to shut down.
On May 1, the Solana network was down for roughly seven hours. This time, a bug knocked the Solana blockchain offline, halting block production at 16:55 UTC on Wednesday.
The bug that sent the blockchain offline was identified in a niche type of transactions designed for offline use cases.
In the last 12 months, the Solana network has suffered at least seven full or partial outages, making it one of the most unreliable chains.
SOL Nosedives 12% After the Outage
Since the network outage was announced, the price of Solana (SOL) has tumbled more than 12%. SOL now trades at $39.67 despite trading as high as $45.55 on Wednesday.
The 24 hours price chart of Solana (SOL). Source: CoinMarketCap
On The Flipside
- To reduce the downtime, Solana validators restarted the system to disable the “durable nonce transactions” until developers identified and patched it.
Why You Should Care
If not permanently fixed, the persistent network outages could reduce the usage of the Solana network and drive its price lower.
Find out the cause of Solana’s last outage in the article below: