Solana suffered a major outage earlier this week but the network’s native token has since recovered from the price drawdown the event caused.
Solana is one of the most intriguing blockchains around, but it comes with a major defect – the occasional outages. The one that was recorded this week is the first in more than a year and it led to the halt in block production, an ordeal that lasted about 5 hours.
As expected, the price of Solana slumped to the weekly low of $93.4. However, as pointed out by Santiment, the event has served as a major turnaround for the protocol whose token has been trading sideways for the better part of the year.
? #Solana is one of the few #altcoins outperforming #Bitcoin this week, surging back above $102. In the past 36 hours, $SOL / $BTC is +4.5%. The outage that concerned traders Monday ended up being a local bottom, with the #FUD fueling this price rebound. https://t.co/lUC0DBS5B3 pic.twitter.com/1NTk5R4QBj
— Santiment (@santimentfeed) February 8, 2024
The Unprecedented Solana Breakout
Per the Santiment data, Solana just joined the host of altcoins brandishing a better performance compared to that of Bitcoin.
At the time of writing, Solana is priced at $101.70, up by 6.21% in 24 hours. The SOL market cap is up by the same percentage to $44,228,515,739 and trading volume re-ignited by over 46% to $2,130,417,978.
Notably, as the network outage occurred, Solana recorded intense selling pressure, dropping to the $93.4 low, its lowest price since Feb. 1. However, Santiment’s data indicates that, as prices dropped, social mentions spiked with a spread of FUD.
According to the market data provider, the combination of these factors resulted in a bottom formation for Solana, leading to an imminent rebound. Solana has now leveraged the recent market-wide recovery to engineer this rebound.
The Santiment chart shows that as of February 7, the total developmental activity on Solana is pegged at 1036.86, underscoring the frantic race employed by developers to get the blockchain back on track.
Solana to Resume Growth Course
Solana had a very stellar year in 2023 when its price rose by more than 700%. The parabolic growth was derailed this year as the conversations around spot Bitcoin ETF approval took center stage.
With the sentiments around Bitcoin ETF settling, Solana is gradually returning to the spotlight. With the ecosystem growth in full force and newer innovations through the Solana Mobile, SOL might be on a major ride for new highs in the coming weeks.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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