{"id":239247,"date":"2022-06-06T19:30:27","date_gmt":"2022-06-06T14:00:27","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=239247"},"modified":"2022-06-06T15:24:59","modified_gmt":"2022-06-06T09:54:59","slug":"solana-from-network-outages-to-bear-run-why-is-sol-having-such-a-bad-time","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/solana-from-network-outages-to-bear-run-why-is-sol-having-such-a-bad-time\/","title":{"rendered":"Solana: From network outages to bear run, why is SOL having such a bad time"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Touted as an \u201cEthereum killer\u201d due to the transaction speed and the scalability it offers, the <\/span><a href=\"https:\/\/solana.com\/\"><span style=\"font-weight: 400;\">Solana Network<\/span><\/a><span style=\"font-weight: 400;\"> has not lived up to its name. The series of outages that the blockchain has suffered in less than a year has brought its claims of reliability under scrutiny from members of the cryptocurrency community.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In less than six months, Solana has suffered over five significant outages. The series of downtimes on the Network has had a ripple effect on the price of its native token, SOL.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Following the outage suffered on 1 June, the price of the SOL token nosedived from $46 to $38.5 in less than 24 hours. The market capitalization of the token also suffered a drop down from $15.6 billion to $13.3 billion within the same window period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result of the series of downtimes on the Solana Network and the bearish outlook of the crypto market so far this year, the SOL token has declined by over 75%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Taking on a downward trend since last November, movements on price charts revealed that the SOL token currently trades dangerously close to the level of August last year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at the token\u2019s performance since last November.<\/span><\/p>\n<h3><b>SOL-rowful figures\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Launched in March 2020 by the Solana Foundation, the SOL token has struggled to find its footing in an ever competitive cryptocurrency market. Exchanging hands at $43.17 per SOL token at press time, the token currently trades at the lows it marked last July\/August.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Price chart movements revealed that the SOL token had struggled with warding off the bears since around 16 November (yellow arrow). Attempting a bull run from 27 November till 2 December (pink arrow), the token has since suffered severely from the hands of bears.<\/span><\/p>\n<figure id=\"attachment_239254\" aria-describedby=\"caption-attachment-239254\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55.png\"><img decoding=\"async\" class=\"wp-image-239254 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55.png\" alt=\"\" width=\"2560\" height=\"1210\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55-300x142.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55-1024x484.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55-768x363.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55-1536x726.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOLUSDT_2022-06-06_08-31-55-2048x968.png 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-239254\" class=\"wp-caption-text\">Source: TradingView<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">From 2 December to date, the\u00a0 SOL token has posted an 81% loss in price.<\/span><\/p>\n<figure id=\"attachment_239255\" aria-describedby=\"caption-attachment-239255\" style=\"width: 1858px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOL_1638399600_1654556399_graph_coinmarketcap.png\"><img decoding=\"async\" class=\"wp-image-239255 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOL_1638399600_1654556399_graph_coinmarketcap.png\" alt=\"\" width=\"1858\" height=\"800\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOL_1638399600_1654556399_graph_coinmarketcap.png 1858w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOL_1638399600_1654556399_graph_coinmarketcap-300x129.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOL_1638399600_1654556399_graph_coinmarketcap-1024x441.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOL_1638399600_1654556399_graph_coinmarketcap-768x331.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/SOL_1638399600_1654556399_graph_coinmarketcap-1536x661.png 1536w\" sizes=\"(max-width: 1858px) 100vw, 1858px\" \/><\/a><figcaption id=\"caption-attachment-239255\" class=\"wp-caption-text\">Source: Coinmarketcap<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">In addition, within that window, the market capitalization of the SOL token has registered a 79% decline from $70.21 billion to the $14.69 which it stood at at press time.<\/span><\/p>\n<h3><b>No Place to Run to<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the promises of increased transaction speed and scalability that the Solana Network claims to offer, on-chain analysis revealed that in the past seven months, the development activity on the network has taken a nosedive. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Development activity is\u00a0 a key metric within the crypto ecosystem as it assures investors that a\u00a0 project is serious about its business proposition, will likely ship new features in the future and is\u00a0 less likely that the project is just an exit scam.\u00a0 In the last seven months, the development activity on the Solana Network has fallen by 48%.<\/span><\/p>\n<figure id=\"attachment_239261\" aria-describedby=\"caption-attachment-239261\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022.png\"><img decoding=\"async\" class=\"wp-image-239261 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022.png\" alt=\"\" width=\"2560\" height=\"867\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022-300x102.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022-1024x347.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022-768x260.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022-1536x520.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.48.00-06-Jun-2022-2048x693.png 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-239261\" class=\"wp-caption-text\">Source: Santiment<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">On a social front, a look at performance showed that the SOL token struggled in March. However since then, the social dominance and the social volume for the token have since taken on an uptrend with occasional beatdowns. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the plethora of downtimes suffered, an easy explanation exists for this. At press time, the social dominance stood at 2.547% while the social volume was spotted at 450.<\/span><\/p>\n<figure id=\"attachment_239264\" aria-describedby=\"caption-attachment-239264\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022.png\"><img decoding=\"async\" class=\"wp-image-239264 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022.png\" alt=\"\" width=\"2560\" height=\"867\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022-300x102.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022-1024x347.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022-768x260.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022-1536x520.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Solana-SOL-08.54.27-06-Jun-2022-2048x693.png 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-239264\" class=\"wp-caption-text\">Source: Santiment<\/figcaption><\/figure>\n<h3><b>Posted Some Gains in the Last 24 Hours<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Although the SOL token has had a terrible year, it managed to register a 10% jump in price in the last 24 hours. According to data from Coinmarketcap, it currently ranks number nine on the list of largest cryptocurrencies by market capitalization.<\/span><\/p>\n<figure id=\"attachment_239269\" aria-describedby=\"caption-attachment-239269\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58.png\"><img decoding=\"async\" class=\"wp-image-239269 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58.png\" alt=\"\" width=\"2560\" height=\"875\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58-300x103.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58-1024x350.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58-768x262.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58-1536x525.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2022\/06\/Screenshot-2022-06-06-at-08.58.58-2048x700.png 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-239269\" class=\"wp-caption-text\">Source: Coinmarketcap<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Touted as an \u201cEthereum killer\u201d due to the transaction speed and the scalability it offers, the Solana Network has not lived up to its name. The series of outages that the blockchain has suffered in less than a year has brought its claims of reliability under scrutiny from members of the cryptocurrency community. In less<a href=\"https:\/\/ambcrypto.com\/solana-from-network-outages-to-bear-run-why-is-sol-having-such-a-bad-time\/\">Continue reading <span class=\"sr-only\">&#8220;Solana: From network outages to bear run, why is SOL having such a bad time&#8221;<\/span><\/a><\/p>\n","protected":false},"author":64,"featured_media":239273,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,41,66,3,4,20],"tags":[],"class_list":["post-239247","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-analysis","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Solana: From network outages to bear run, why is SOL having such a bad time - AMBCrypto<\/title>\n<meta name=\"description\" content=\"Touted as an \u201cEthereum killer\u201d due to the transaction speed and the scalability it offers, the Solana Network has not lived up to its name. 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