According to CoinGecko data, Solana (SOL), fell below $30 this morning for only the second time since June. There have been ongoing stability problems, with the network experiencing downtime from September 30.
The crypto market is currently in the red amid wider economic turmoil. Top coins such as Bitcoin or Ethereum have both fallen today, along with much of the market. Solana took a more severe hit, falling to a low of four months.
Solana (SOL), which is currently at $29.70, has fallen about 5% in the past 24 hours. According to CoinGecko, it fell to $28.35 this morning. This is the lowest price since June 13, when SOL was $28.19. SOL has been slowly climbing back towards $30 as of this writing. Today, the wider crypto market is down by less than 3%.
Today’s dip has increased recent losses for Solana investors. SOL is now down 13% in the last seven days and 20% in the past month.
SOL is now down 80% compared to a year ago, and 89% from its peak price last November. This is when Solana as well as the wider crypto market surged to new heights. As recently as April 23, Solana was worth over $100 per coin.
SOL, the native cryptocurrency of Solana is a layer-1 blockchain network that’s used for decentralized applications and games as well as DEFI and FTs. Due to its speed and lower transaction costs, the so-called “Ethereum Killer” gained popularity.
While Solana is popular among many developers and users, it has faced difficulties scaling. Solana’s network was taken offline three times in 2022, most recently September 30,. There have been five major outages to date. Other times, the network has been unable to process transactions and is currently offline.
Solana Labs’ founding team has implemented a series of network upgrades to stabilize the network. Jump Crypto and Solana Foundation are creating a second validator client in order to keep the network stable, should the existing validator software fail again.
Anatoly Yakovenko, co-founder of Solana, stated that outages are “the greatest challenge for us and the number one priority.” The most recent episode of Decrypt’s podcast gm podcast discussed how Firedancer, the second validator client, is a “long-term solution” to ensure network stability.