Fintech and Web3 experts say an altcoin project has lost credibility due to the unstable network. The subject of the word is the altcoin project Solana (SOL), as you predicted.
Solana is losing credibility
The development team is trying to position decentralized finance (DeFi) Solana (SOL) as an Ethereum (ETH) competitor. That’s why Solana is in the middle of the most watched altcoin projects. But Solana’s growth is threatened by network issues, including frequent outages.
Accordingly, according to a report shared by Finder on October 27, about 33% of industry experts said they lost faith in the Solana team, mainly due to the network outage issue.
Altcoin growth trajectory
Despite concerns, 37% of 55 fintech and Web3 experts still say they have full faith in Solana. Additionally, 30% of respondents are optimistic that network challenges are part of their growth trajectory. Paul Levy, senior lecturer at the University of Brighton, explains:
Solana is in recovery mode. Despite some technical glitches and network outages, it enjoys high prestige in the scientific community. Their troubles will be short-lived and shared with many other players. It has a potentially positive long-term future.
Specifically, Solana’s primary cause of outage has not been identified. This is a factor that divides experts into two. Indeed, 22% of the panel said outages were due to low-cost processes. The rest raises the bigger problem of centralization. MetaTope co-founder Walker Holmes says about the bet:
SOL has one of the strongest communities in the game. We’ve seen users get burned in the worst possible way. For the most part, centralization is at the heart of the problem.
It’s in the middle cryptookin.comAs we reported, Solana continues to record significant growth, with Solana-based processes exceeding 100 billion.
Impact of network outages
However, Solana co-founder Anatoly Yakovenko calls network outage difficulties a ‘curse’. This turns out to be a precious pain point for Blockchain. Despite the blackouts, the network shows Solana’s integrity remains intact. In 2022 alone, the network suffered at least six significant outages, Solana said. The last event was recorded on October 1 and lasted over six hours.
In this midst, experts generally predict that Solana will likely trade at $35 by the end of 2022. At press time, the altcoin was trading at $30.73 with a loss of around 1.5% in the last 24 hours.