Why Solana Price Fell Today?
Solana (SOL) has plummeted in the last 24 hours following market factors and network issues due to an influx of users. The asset is down 7.72% today and 6% this week wiping out gains recorded by the recovery efforts in the market.
Once hailed as outperforming other crypto assets on weekly gains, Solana is recording sharp liquidations as sentiment plunges in the short term.
Solana has seen its recent gains plummet after network bugs continue to plague the blockchain. The number of failed transactions on the network has surged in recent weeks hitting up to 70% of non-voting transactions. The high rate of failures creates a clog that sparks user complaints in social media spaces.
Solana has recorded a massive increase in network usage from Q4 2024 leading to a significant price action. Trading bots have been linked to failed transactions as most are dropped before they get on-chain. Mert Mumtaz of Helius Labs explained that the metric can be misleading for 90% of users.
Anatoly Yakovenko addressed the issue on X (formerly Twitter) stating that bug issues will be identified and fixed.
Austin Federa, a member of Strategy at the Solana Foundation stated that the network is being tested by an influx of traffic with bug fixes expected over next week.
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