The Solana blockchain network is currently experiencing an outage, marking the 11th such incident in the past two years. According to the latest updates, the Solana mainnet beta has been down for about two hours and block progression has stopped.
Solana has been down for 2 hours |Solscan
Solana network has reached a dead end
The problem was first noticed when Solscan and OKLink, two well-known block explorers, pointed out that there were no new transactions on the network. The last recorded transaction occurred at 9:52 am UTC. Upbit, a cryptocurrency exchange, subsequently announced it was suspending deposits and withdrawals for SOL and several other tokens, citing ongoing outages.
Solana's team confirmed the situation in an incident report. “Engineers from across the ecosystem are investigating the mainnet beta outage,” they said, confirming the incident but not providing details about the cause.
Engineers from across the ecosystem are investigating an outage on mainnet-beta. This thread will be updated as more information becomes available https://t.co/rfeioQ6BG9
— Solana Status (@SolanaStatus) February 6, 2024
Laine, a blockchain software company and a validator for Solana, provided more information about the technical challenges encountered. “Consensus on the last optimistic slot has been reached at 246464040, validators are on standby for next steps as needed,” Lane explained.
They also mentioned that engineers are working on a potential fix, but it remains unclear whether a coordinated cluster restart will be required. “Engineers are creating a version containing the fixes, once it is built and tested, further instructions will be passed on to the validators,” the team said.
In addition to the updates, SolanaFloor reported: “UPDATE: Validators have begun taking snapshots using their local ledger state to prepare for the restart. Solana core engineers are still preparing to release a build to fix the glitch.”
The incident marks the first power outage since February 2023, according to Solana's status page. Notably, the platform experienced numerous outages due to node issues in 2022, with a major outage that lasted nearly 18 hours in September 2021.
The rolling blackouts have drawn criticism from industry experts. Charles Edwards, founder of Capriole Investments, noted the decentralization aspect, stating: “This is the 11th Solana outage in the last 2 years. This is not what decentralization looks like.”
Buy Falling prices for SOL?
The market reaction to this latest development was mixed. Cryptocurrency analyst Gumshoe offered a nuanced perspective, suggesting that while the glitch is negative news, it could ironically backfire on late sellers of the token:
“Solana's fall is obviously bad, but nothing new – All the SOL haters now have a catalyst for short selling – We are in a turbulent market, this is a clear trade signal – Everyone is hungry for money, will there be revenge trading Ironically, this could be so very wrong for late shorts”
Pentoshi, another well-known analyst, advised patience, noting that the market is currently consolidating and that investors should not rush into decisions based on the expectation of constant breakouts:
Market consolidation. People trying to catch breakouts on some of them expect the trend to continue on a daily basis.[…] I don't think it will go as low as I originally showed, but it will likely reach $75-$78 at some point.
At the time of publication, the price of Solana (SOL) was down slightly following the incident, falling as much as 3%. A closer look at the weekly SOL/USD chart shows that the recent decline represents only a minor deviation in the broader market trajectory.
On the downside, SOL price is currently facing resistance at the .382 Fibonacci retracement level ($107.75). This level serves as a key threshold that can determine future bullish momentum in SOL. Conversely, on the decline, critical support lies at the 0.236 Fibonacci level, which is valued at $69.6.
Solana price, 1-week chart |Source: SOLUSD on TradingView.com.