Solana loses about $1.5 billion in a week due to network attacks

The decentralized finance (DeFi) asset Solana (SOL) is experiencing a huge capital drain, as the network faces a number of obstacles, including hacking and system failures. The instances seem to restrict Solana’s ability to supplant existing platforms like as Ethereum (ETH).

According to CoinMarketCap statistics, Solana’s market value decreased by $1.43 billion, or 13%, from $12.08 billion on October 6 to $10.6 billion as of October 13.

Although Solana’s fast decline in market capitalization aligns with the broader decline in crypto markets, the asset is impacted by the current acceleration of associated network vulnerabilities.

The most recent decline occurred when the Solana-based DeFi exchange Mango Markets was exploited for more than $100 million. The issue included hackers manipulating price oracle data, which allowed them to get bitcoin loans with minimal collateral.

After U.S. inflation reaches 8.2%, almost $8 billion flees Bitcoin within hours. Analysts try to warn that Bitcoin’s price may fall further as volatility settles.

The previous outage occurred on October 1 and lasted at least six hours. Alone in 2022, the network has had at least five large disruptions, some lasting days.

In addition to network problems, the Solana team continues to position the company’s assets as an “Ethereum killer.” In this line, the network is experiencing substantial advances resulting in important milestones, such as surpassing one billion transactions since the introduction of the platform in 2020.

Notably, the transaction milestones reinforce Solana’s position and potential in the cryptocurrency market, since the statistic looks unaffected by the network difficulties. In addition, the transaction conforms to SOL’s fundamental principles of promoting quick, low-cost transactions.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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