Solana dropped to 8th place in market turnover after losing to Ripple’s XRP
The cryptocurrency market is recovering from the long-term downturn that began at the end of last week. The vast majority of coins and cryptocurrencies have lost 40% of their value since Friday and are hit hard.
The King cryptocurrency has been close to 3% in the past 24 hours and is striving to stay above $34,000. Ethereum (ETH) and Cardano (ADA) both posted bigger losses – both down more than 6.50% on the day.
Solana prices are experiencing the biggest decline, and this is why
The altcoin market has also posted huge losses in the wake of the recent wave of sales. In particular, Solana has one of the biggest red candles on the daily and weekly time frames. It’s down 11.08% in the last 24 hours and about 40% in the last 7 days.
Over the past few weeks, the blockchain has been hailed by major banking institutions such as Bank of America and JP Morgan as a serious competitor to Ethereum. However, despite its growing popularity and adoption, the beloved blockchain has been subject to complaints and criticism lately.
Outages and other network issues disrupt the blockchain and inconvenience merchants, investors, and other community members. Recently, the Proof of Stake blockchain experienced another instance of network congestion that prevents DeFi users from playing on Friday and Saturday.
Solana was clogged with a flood of duplicate transactions and slowed the network. The outage led to an unplanned “illegal liquidation” of DeFi users who were unable to renew their loan guarantees. According to Solana founder Anatoly Yakovenko, the deal was initiated by a bot.
XRP outperforms Solana, who lost half of its market capitalization in three weeks
Solana’s network remained offline most Fridays and Saturdays. Market analysts believe that this outage will hurt the price of Solana’s internal crypto token, SOL.
Ripple’s native cryptocurrency benefited from poor network performance and surpassed Solana by market capitalization. The market capitalization of the tokens has more than halved since the beginning of the year.
Solana’s secondary market capitalization was around $53 billion on the first day of this year, but it has shrunk at the time of writing to $25.8 billion. Coinmarketcap data also shows that the market cap of the latest Solana was very low at the end of August.
From Tweet series To address network instability, Solana’s engineering team has shown that they are working to completely fix the issue and ensure that the network is free of congestion issues. The team promised to deliver some improvements within two months to improve the blockchain.