Cryptocurrencies . 3 Aug 2022

Ethereum Competitor Solana’s Outage Affair Continues

by Priyanshi Agarwal
Ethereum Competitor Solana’s Outage Affair Continues
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Yesterday, Ethereum competitor Solana’s RPC nodes went offline after being DDoS attacked to slow down an ongoing exploit that drained user wallets.

Validators in the network were not operating new blocks for several hours. Applications created on Solana's blockchain were brought offline as a result.

Following the event, Solana (SOL) price crashed nearly 12% at a point and later recovered, according to data from Coingecko

The last outage of Solana was on June 1, 2022, when the network was down for nearly four and half hours before being successfully restored, according to Solana Status. A similar kind of attack caused an outage then.

Earlier today, a bug in the stable nonce transactions feature led to nondeterminism when nodes generated diverse results for the same block, which prevented the network from advancing, tweeted Solana Status.

There is a vibrant security incident on Solana. Many (7000+ and counting) wallets are emptied of SOL & USDC, tweeted Changpeng Zhao, CEO of Binance. Don't know the root cause yet. Maybe permissions are given to apps.  For remediation, transmit the funds to a cold wallet or CEX like Binance.

Solana validators had to restart as per instructions conveyed by the Twitter handle. The outage stayed over 4 hours. However, the SolanaStaus Twitter handle indicated that the network and the funds were secure.

The overall NFT trading volumes on Solana plummets 12.07% following the node outage, according to data from Cryptoslam.

Price Action

Solana (SOL) is trading at $40.71, up 0.7% over the past 24 hours, according to data from Coingecko. SOL prices have dropped by over 55% in the last 30 days.

Solana is down nearly 84.4% from its all-time high of $259.96, recorded in November 2022.  The fall in the prices of SOL can also be attributed to the extended bearish moment in the cryptocurrency markets alongside the rate hikes by the U.S. Fed.