After concerns were raised about a slowdown in transaction processing speeds on Solana’s network and suggestions that it might be due to an attack, the native token SOL was lost in the crypto market today.
SOL was trading at USD 178 at 11:13 UTC. It had fallen 5.5% over the last 24 hours and 23% over the past week.
The drop in price was however not significant relative to other coins. bitcoin trading fell by 2%, while Ethereum trading fell by 5%.
Today’s fall in price of SOL was due to concerns about a slowdown of transaction processing capacity on the network. According to users, this capacity had fallen well below its normal level.
The issues were resolved as of Friday press time. The Solana Beach Dashboard reports that the network currently processes 3,260 transactions per second, which is more than the normal network operating speed of around 2,000 TPS.
“During an initial DEX offering – IDO, a large number of transactions were sent and landed in Solana blocks. This required a lot of compute power. These transactions took longer than expected because the network didn’t properly measure the compute. “This is the same thing as what happened last Friday,” Austin Federa from Solana Labs stated in a comment to Cryptonews.com.
He said that “The network wasn’t down at any time” and also stressed that the network’s state can be independently verified by running a node, or using a block-explorer.
GenesysGo reported the latest set of network problems around 15:00 UTC Thursday. tweeted that the Solana validateator network is having issues processing transaction requests.
The Solana-based NFT platform Blockasset took it one step further by stating on Twitter that Solana was “being overwhelmed with [Distributed Denial of Service–DDoS] attacks which have clogged up the network and caused delays.”
The original tweet was shared originally by Colin Wu, a crypto-focused journalist. However, the tweet appears to have been deleted as of Friday morning. There are no mentions of any network slowdowns on Blockasset’s Twitter profile.
However, allegations that Solana was the victim of an attack are still being discussed on Reddit’s r/CryptoCurrency forum yesterday. Some commenters claim the problems are due to flaws in network design.
“The network chooses one validator as the exclusive propagator for transactions during a given time. The entire network is dependent on this validator. This means that the entire network can be hacked, bribed, or DDoS by this validator,” one Reddit user wrote. He called it “a major design flaw of the network”.
The Solana Foundation have not yet confirmed any attack on the network. Status.solana also confirms that all systems work normally and are in operation.
This week’s network slowdown comes after the entire Solana Network went offline back in September. According to reports, the network outage was caused by an increase in transaction loads that “flooded” the queue.
Anatoly Yakovenko was the CEO of Solana Labs and he commented on the problems the network had back then. He also said that bot trading was the root cause.