The weight of the market has crushed the cryptocurrency, Solana. On 7th January alone, it has seen a decline of 9.4%, which represents a $4.5 billion loss in terms of market capitalization.
The cryptocurrency is reported to have experienced degraded performance thanks to a surge in high compute transactions. The more significant number of transactions on the network has caused the network capacity to be reduced, and as a result, there have been several failed transactions.
It is not the first incident, either, as there has been another similar incident in the past week, causing investors’ concerns. The investors are still worried about the long-term network performance of the cryptocurrency and its general integrity, which the failed transactions fail to support adequately.
However, the hiccups are a good sign for the cryptocurrency and bring a glimmer of hope for the people interested in investing in Solana. With the increased number of transactions, the current network capacity cannot handle the transactions, which means that the network is facing greater loads than anticipated.
The stated network capacity of the cryptocurrency is 50,000 transactions per second. The slowdown in the network indicates that the number of transactions has increased, which has presented the cryptocurrency with growing pains.
With patience, the network slowdowns signify that the currency is growing, and as more people start to use the network, it makes it more resilient in the long term. Solana is expected to become stable in a few months, given the current concerns and the efforts put in to grow its network capabilities.
With this in mind, investors should stay patient with the growing network, and as it evolves, it becomes strong enough to take on the long run.
Security risks might be there, but this is a matter that affects all cryptocurrencies. As such, you should not be afraid to invest in Solana but be optimistic about the promise it holds for investors.