Solana is Facing Transaction Processing Issues

Hello!

All of you following the crypto world might have noticed that meme coins on Solana, such as WIF, BONK, and MYRO, among others, are currently very popular. You can view the complete list of meme coins on Solana on Coingecko.

However, there have been recent issues. The Solana blockchain network has encountered serious challenges. Data analysis has revealed that more than three-quarters of user transactions are currently failing. This high failure rate is a new record for the Solana network. This has caused an uproar among users on social media. And the price drop?

Causes of the Issues

What’s causing these problems? The key reason for the issues is believed to be the increased demand for memecoins. This has led to network congestion.

What are the reactions? Mert Mumtaz, the CEO of the Helius platform, which enables the building of crypto applications on Solana, believes that bots attempting to execute arbitrage trading are responsible for most of the failed transactions (I will write about what arbitrage is in one of the future posts). According to Mumtaz, most users will not be directly affected, as their wallets perform a simulation before executing a transaction and warn them of potential problems.

Impact on SOL Price

The price of SOL, the key currency on the Solana network, has recorded a 10-percent decline over the last week, despite a 37-percent increase in the previous month. Currently, SOL is the fifth-largest cryptocurrency by market capitalization, with an estimated value of 79 billion dollars.

Where to Follow Solana Projects?

Finally, here are some links where you can follow the Solana project:

Website: https://solana.com/
Youtube: https://www.youtube.com/SolanaFndn
Twitter: https://twitter.com/solana
Solana live price: https://www.coingecko.com/en/coins/solana

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