The Solana network is failing to reach its target as the best alternative to the Ethereum blockchain network.
Solana is a popular Proof-of-stake blockchain network and it is famous for its unique protocol “Proof-of-history”. Initially, the Solana blockchain jumped into the crypto sector as a rival to the Ethereum blockchain to provide high-scale transactions at very low fees.
At the present, Solana can process transactions up to 50,000 per second at average fees of $0.00025 per transaction. The scalability of the Ethereum Network may hit a maximum of 20 TPS or we can say the scalability of Solana is 25,000 fold more than Ethereum’s scalability.
Even though the transaction fees in the Solana network is very low over the other networks, this network is still facing a downfall in terms of new investors & its network users because of many reasons. Two of the major reasons are FTX exchange downfall & second is network bugs.
As we know, FTX collapsed badly, approximately 10 days ago. The collapse of the FTX exchange occurred with approximately all affiliated companies like FTXus, Alameda Research, etc.
Alameda was one of the biggest investors in the Sol coin, a native token of the Solana blockchain network. During the liquidity crisis of the FTX exchange & its affiliated companies, reportedly Alameda was intending to sell its Sol holdings which further created a very big sell pressure on the Sol coin.
Solana Network Bug
In the last 12 months of the time frame, the Solana blockchain network faced more than 10 times network outages because of numerous types of bugs in its blockchain code.
The bugs in the Solana network played an important role to pull the Sol network from its goal of Ethereum’s rival tagline.
The current price of the Sol token is $12.72 and this price is down by approximately 95% from its all-time high trade price.