Solana, one of the largest blockchain networks, was hit by instability during a turbulent week for cryptocurrencies.
Solana, one of the largest blockchain networks, was hit by instability during a turbulent week for cryptocurrencies. The problem encountered by validators using their computing power to help verify the network was caused by excessive duplicate transactions, according to a Jan. 22 posting on the Solana website. Engineers have released version 1.8.14, which “will try to mitigate the worst impact of this matter,” the report said. It added that more improvements are expected in the next eight to 12 weeks, and many of those features will be added. “rigorously tested”.
“Solana mainnet beta is experiencing high levels of network congestion,” the post reads. “The last 24 hours have shown that these systems need to be improved to meet user demands and support the more complex transactions now occurring on the network.”
A tweet on an unverified account retweeted by Solana Labs co-founder Anatoly Yakovenko attributed the network’s problems to “current market volatility,” without providing further details. It’s not the first time Solana has suffered from instability: in September, for example, it suffered a 17-hour outage, caused by what it called “resource depletion.”
Solana’s troubles came amid a wide-ranging pullback in tokens from Bitcoin and Ether to Polkadot — and Solana itself, which is down more than 30% in the past seven days, according to CoinGecko’s prices. The cryptocurrency universe has lost about $1 trillion in market value from its highs, and Bitcoin is nearly 50% off from a November record.
The smaller Avalanche blockchain has so far held up well under the recent stress, according to a tweet from Emin Gun Sirer, chief executive of Ava Labs, the developer of Avalanche. “Chain performance was solid throughout,” he said.
Memecoin Faithful Stops Smiling When Rout Deepens
(Bloomberg) A widespread sell-off in cryptocurrencies caused the most speculative tokens to lose significant ground as risk-averse stances pushed investors away from meme assets.
Virtual coins made popular by online hype, including Dogecoin and Shiba Inu, were among the biggest losers in weekly value on Friday as crypto majors Bitcoin and Ether slipped below key support thresholds.
Dogecoin fell a whopping 24% in the most recent seven-day period, dropping more than 12% to a low of $0.148 on Friday alone, according to data from CoinGecko. The meme coin is now down nearly 80% from its all-time high, which was recorded nine months ago for the appearance of prominent supporter and Tesla Chief Executive Elon Musk on “Saturday Night Live.”
Other coins inspired by the Shiba Inu dog breed, including Shiba Inu and Dogelon, are down about 18% in the past week. Outlier Baby Doge, however, rose in value by a fifth in the same period.
Meanwhile, popular altcoins such as Solana, Terra’s Luna, Cardano, and Polkadot suffered similar hits, with some tokens dropping as much as 15% in the past 24 hours.
Mike McGlone, commodities analyst for Bloomberg Intelligence, said the rise in price of meme coins like Dogecoin and Shiba Inu last year made it more likely that speculators would continue dumping into 2022.
“The dog coins were prime examples of the speculative excesses in space and the sooner the market is purged of this folly, the more likely the three musketeers – Bitcoin, Ether and the proliferation of cryptodollars – will once again transform the global financial world. system,” he said in an email.
Meme stocks also felt the pain of crypto’s whipsaw on Friday. GameStop Corp. fell 2.6%, while the Solactive Roundhill Meme Stock Index, which includes stocks such as AMC Entertainment Holdings Inc., BlackBerry Ltd. and Peloton Interactive Inc. follows, 2.58% fell.
Crypto-related stocks fell across the board. Mining Companies Riot Blockchain Inc. and Marathon Digital Holdings Inc. traded 6.6% and 6.0% lower on Friday, respectively, as major Bitcoin holder MicroStrategy Inc. 9.4% lost. Core Scientific Inc. — North America’s largest Bitcoin miner, which debuted its shares a day earlier after merging with a special-purpose acquisition company — fell 15.34%.
The entry of the tech-heavy Nasdaq 100 into correction territory on Thursday boded ill for Bitcoin as the price correlation between the two reached its 10-year high.
An environment of tightening monetary policy and stricter regulation for crypto asset companies pushed Bitcoin to its biggest daily decline since December 4 on Friday, a staggering 8.7%.