On 1 October, Solana [SOL] introduced that it suffered one other occasion of community downtime. The announcement added to the tally of already current situations the place Solana reported community outages prior to now.
Solana will not be new to stories of community downtime. In line with the latest announcement, the community outage affected its potential to course of transactions. This incident compelled builders to restart the community.
The Solana community is experiencing an outage and never processing transactions. Builders throughout the ecosystem are engaged on diagnosing the difficulty and to restart the community. Extra info will probably be supplied because it turns into accessible.
— Solana Standing (@SolanaStatus) October 1, 2022
Solana’s earlier community downtime incidents dented its repute, making it much less engaging to traders and potential customers. Nevertheless, the community has been working in the direction of rebuilding its repute however the newest incident added extra salt to a previous harm.
In line with Solana’s follow-up replace, validators managed to efficiently restart the mainnet beta community. Though Solana managed to revive operations, the most important problem that the community confronted was how these downtime episodes affected its potential to draw customers.
The potential impression
Some dapps and crypto initiatives in search of a number blockchain may not prioritize Solana as one in every of their prime choices as a result of downtime. This implies such incidents can have an effect on a community’s potential long-term development and prospects. As well as, community downtime incidents have traditionally had a adverse impression on SOL’s worth motion.
SOL delivered a bearish efficiency after earlier stories of community downtime. It dropped by barely over 8% since 1 September when the newest community outage was introduced. It traded at $32.37 at press time after making an attempt a slight restoration.
Supply: TradingView
SOL’s newest worth motion because the begin of October aligned with a bearish efficiency within the total crypto market. In different phrases, the not too long ago reported Solana outage could not have had a significant impression on its worth. The identical can’t be stated about investor sentiment.
SOL’s weighted sentiment registered a pointy drop within the final three days and this consequence could be tied to the community downtime.
Supply: Santiment
Regardless of the bearish shift in weighted sentiment, SOL’s demand within the derivatives market achieved some restoration. Each the Binance and FTX funding charges recovered barely within the final two days. This confirmed that the incident didn’t set off vital promote strain.
Supply: Santiment
The place to subsequent for Solana?
The most recent incidents solely added to the tally of Solana community downtime incidents. This will definitely have an effect on its potential to draw natural development however traders ought to notice that the mainnet nonetheless stood in beta.
An alternate view might be that these incidents additional spotlight potential points that may be prevented additional down the road. These points can also assist the community to be higher ready via enhancements that strengthen the community.
