Solana’s price is down 10% after a continued network outage. This comes because of issues around network stability amongst a large number of transactions. As of September 17th, the price was at $135.25, after the all-time high on September 9th of $212. The price has since picked up slightly and as of September 19th and now sits at $156.80.
The Rise of Solana
Solana has been on the rise for the past month or so, with prices going from a price of around $72 all the way up to the Sep. 9th high of $212. This comes during the rise of NFTs on alternative blockchains. Solana lead the way in the competition with Ethereum, as people migrated to the platform due to the cheaper gas fees and faster transaction speeds. In 2021, SOL rose by 7800%. It is important to note that Solana was only officially launched in March 2020. This is an incredible rise for such a short amount of time.
Why is Solana’s Price Down 10%
Transactions reached a peak of 400,000 transactions per second, which caused the network to start forking. This resulted in increased memory consumption. Reportedly, it was a layer 1 fault. After this technical failure, the engineers managed to get the network back online on September 16th. Additionally, they confirmed to remain working on changes and implement fixes. Plus, allegedly a detailed report is coming soon.
NFTs on the Solana blockchain has been on the rise recently, with many collections raising in value and popularity within the general NFT community. Most people have been introduced to the space through Ethereum NFTs. Now many are moving towards Solana because of the aforementioned benefits. We’ve seen some successful projects on Solana, through Solanart which is one of the most popular marketplaces on their ecosystem. Some accused these projects of simply copying Ethereum NFT projects, and not without grounds for suspicion. In fact, to see Solana NFTs success and growth, we may need to see more originality from the project’s creators. Essentially, this would potentially provide a more supportive and strong user base who’ll buy Solana NFTs.
It may be down now, but what about for Solana’s Price in the Future?
Honestly, we don’t see Solana’s drop in price majorly affecting its future. As we know, cryptocurrency is extremely volatile and is often subject to dips and rises. Actually, Solana has a strong team behind them and will likely bounce back with ease. Within the next few weeks they should go back to being a solid competitor to Ethereum. However, it is still very early for Solana, and there are many possible challenges ahead for the blockchain. Similarly, there have been many dips for other currencies like Bitcoin and Ethereum over their history. Unfortunately, most aren’t caused by problems with the system. Despite that, they still have their unique selling points, with transaction speeds and low fees. Thus, even after this hiccup, people will likely still still turn to it.