Fintech and Web3 experts ‘lose confidence’ in Solana over unstable network
The decentralized finance (DeFi) network Solana (SOL) is among the most watched cryptocurrency projects as the development team works to position it as an Ethereum (ETH) competitor. However, Solana’s growth is threatened by network-related problems such as frequent power outages.
Along these lines, about 33% of industry experts have revealed that they are losing confidence in the Solana team mainly because of the network outage issue, a report by Finds shared with Finbold on October 27 indicates.
Solana’s growth trajectory
Despite the concerns, 37% of the 55 fintech and Web3 specialists indicated that they still have full confidence in Solana, while 30% expressed optimism that the network challenges are part of the growth trajectory.
“SOL is in recovery mode. <…> Despite some well-publicized technical flaws [and] network interruption it has a high reputation in the scientific community. The issues will be short-term and have been shared with many other players. It has a potentially positive long-term future, says senior lecturer Paul Levy at the University of Brighton.
Notably, Solana’s primary cause of the outage has not been identified, a factor that divided the experts. In fact, 22% of the panel stated that the disruptions are due to low-cost transactions, while the rest cited a larger issue such as centralization.
“SOL has one of the strongest communities in the game. <...>We’ve seen users get burned in the worst ways, usually with large amounts of centralization at the heart of the problem,” said MetaTope founder Walker Holmes.
In particular, as reported by Finbold, Solana continues to record significant growth, with Solana-based transactions exceeding 100 billion.
Impact of network outages
However, the network outage challenges have emerged as a major pain point for the blockchain, with Anatoly Yakovenko, one of the co-founders of Solana, describing the situation as a “curse”. Despite the blackout, the network maintains that Solana’s integrity remains intact.
In 2022 alone, the network has had at least six significant outages. The last incident was recorded on 1 October and lasted for over six hours.
Overall, the experts believed that Solana is likely to trade at $35 by the end of 2022. At press time, the asset was trading at $31, with a gain of around 1.5% over the past 24 hours.
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