- Solana’s devnet faced an outage
- Sentiment around the network declined, while the price rallied on the charts
Solana [SOL] had one of the most positive runs in the crypto-sector over the last few months. Despite this growth, however, some people remain skeptical of Solana due to the multiple outages on its mainnet in the past.
Devnet goes down
The sentiment around Solana could get much worse now due to the recent outage on its devnet.
The same was confirmed by Solana Devnet’s X account. According to the same, engineering teams are now working to resolve an issue caused on the devnet. Here, it’s worth stating that even though the devnet does not impact the Solana testnet or mainnet, the downtime could still affect how people perceive Solana.
Source: X
In the past, the devnet has encountered congestion-related challenges. To address this issue, Solana introduced a new version of the validator client software aimed at resolving persistent congestion issues, and they are urging validators to upgrade promptly. Anza, a spinoff of Solana Labs, took the lead in the development process, releasing version 1.18.11 specifically designed to alleviate network congestion.
It remains to be seen how developers fix this issue and how sentiment around Solana can be affected.
AMBCrypto’s analysis of Santiment’s data revealed that at the time of writing, the weighted sentiment around the Solana network had fallen considerably. This indicated that the number of negative comments around Solana on social media outnumbered the positive ones. If this negative sentiment persists in the future, it could derail the growth of the Solana network and the SOL token.
Source: Santiment
State of Solana’s DeFi
Despite these negative sentiments, however, Solana is doing relatively well in the DeFi sector. In Q1 2024, Solana was the primary driver behind the increase in active addresses in the DeFi space, accounting for 45% of the total DeFi activity by the end of the quarter.
Read Solana’s [SOL] Price Prediction 2024-25
Source: X
Despite the heightened DeFi activity over the past quarter, DEX volumes on Solana’s network declined over the last few days. Moreover, the TVL (Total Value Locked) on Solana also fell during this period.
Source: Artemis
And yet, despite these factors, SOL’s price rallied. At press time, SOL was trading at $145.38, having appreciated by 11% in 24 hours.