Solana blockchain was down for a few hours

Solana Blockchain was down for 4 hours

On Wednesday, the Layer 1 blockchain platform Solana suffered a four-hour mainnet outage after a bug halted block production. According to Solana co-founder Yakovenko, the outage was triggered by a bug in the blockchain’s durable nonce function that caused “parts of the network to consider blocks invalid” and validators to be unable to reach consensus. After that, the validator group cooperatively restarted the network and disabled the durable random number function. Following this event, the price of SOL has dropped 13% in the past 24 hours, falling below $40.

On-Chain Cost Basis Shows Buying Opportunity

U.S. stocks got off to a lower start in June after the Federal Reserve started quantitative tightening this week. The broader market corrected further to the downside on Wednesday, giving back most of the gains from Monday’s rally. BTC has lost 5% of its market value in the past 24 hours, falling below the psychological barrier of $30,000 again. The most valuable cryptocurrency by market cap faces immediate upward resistance in the $30,000-$30,400 range, and if it fails to break through $30,000, BTC could test major support around $29,500. However, as the cost bases for long- and short-term holders converge toward the same level, some on-chain indicators suggest that good buying opportunities may be on the horizon.

There is no doubt, however, that market sentiment has taken a hit after all. The optimism that had fueled the start of the month faded as investors returned to a safe-haven stance. Similar to BTC, ETH is down 5.86% over the same period and is currently struggling to defend the $1,800 position. Major altcoins are mired in losses, with SOL and ADA leading the downside correction with double-digit percentage losses.

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