- Significant disruption: The Solana network experienced a major outage lasting 5 hours attributed to overwhelming transaction activity and conflicting nodes.
- Resolution efforts: Validators pinpointed the problem, implemented software fixes, and utilized snapshots to recover the network's functionality.
- Price impact: $SOL experienced a temporary 4% decline but quickly rebounded to $95.5 once the network was restored.
- Market dynamics: The 50-day Exponential Moving Average (EMA) and the $100 threshold are proving to be robust support levels, aiding bullish sentiment towards SOL.
- Potential trajectory: Solana may undergo further consolidation before a potential upward surge, with a breach below the $79 low from January indicating bearish dominance.

On Tuesday, Solana experienced a significant setback as its entire network crashed for approximately five hours. This unexpected event resulted in a temporary dip in the price of SOL. However, the cryptocurrency quickly rebounded alongside the network's recovery. In this article, we delve into the details of what transpired during the Solana network crash.
The crash occurred when pending transactions on the SOL network surged, leading to an overload that overwhelmed the network's capacity. This overload caused the network to reach a peak of 400,000 transactions per second (TPS), resulting in a chain reaction where some nodes in the network began forking themselves, generating divergent blocks and disrupting normal operations. This incident stood in contrast to Solana's usual Proof of History consensus mechanism, which mandates agreement among all nodes on the ledger state.
To address the issue promptly, Solana's validators and core team swiftly identified the problem's source and commenced work on a solution. Speculations arose regarding potential issues with the Berkley Packet Filter mechanism, as suggested by Matthew Sigel of VanEck's Digital Assets Research. In response, SOL core engineers released a patch and a new version of the validator software to prevent similar incidents in the future.
To restore the network, validators had to create snapshots of their local ledger states before the outage and utilize these snapshots to restart the network. By 15:00 UTC on Tuesday, validators had updated their software and synchronized their snapshots, successfully reviving the network. Solana Foundation apologized for any inconvenience caused by the outage and expressed gratitude to the community and validators for their collaboration. They also assured the security and integrity of the network remained intact, with no funds at risk.
Despite the initial price drop, Solana's resilience shone through as the network stabilized. SOL's price rebounded, currently trading around $95.5, buoyed by support from its 50-day Exponential Moving Average (EMA). The charts indicate SOL consolidating below the $100 mark, providing a strong resistance line against bearish pressure. Should SOL test its 50-day moving average without breaking the ascending trendline, further consolidation is anticipated. Solana's bullish stance persists, with a break below the $79 low on January 23 signaling potential bearish control.
Disclaimer: While Voice of Crypto endeavors to provide accurate information, readers are advised to conduct their own research due to the volatile nature of cryptocurrencies. Voice of Crypto bears no responsibility for missing or inaccurate facts.
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