Solana’s [SOL] Network Upgrade Fails to Boost Price Amid Revenue Drop and Decreasing Activity

  • Solana [SOL] has mandated network validators to upgrade to Testnet.v1.18.15 in an effort to reduce congestion.
  • The price of SOL has been fluctuating, with indicators suggesting a possible drop to $155.
  • Solana developers have taken actions to revive the network following a recent outage, though the network is still not operating at full capacity.

Solana validators upgrade to Testnet.v1.18.15 to tackle congestion issues amidst fluctuating SOL prices.

The Impact of Network Upgrades on SOL’s Performance

In response to repeated congestion issues, Solana’s latest drive involves an upgrade to Testnet.v1.18.15. This comes after an outage that lasted for four hours due to a surge in SOL demand. While developers have been working to stabilize the network, the new upgrade aims to enhance uptime and reliability.

Current State of Solana Network and Validator Updates

Despite these efforts, Solana’s performance is still suboptimal. The network’s performance had improved but it’s not functioning at peak efficiency. The upgrade to v1.18.15 is anticipated to bring stability. However, market reactions have shown a continuous downward trend in SOL prices, currently sitting at $159.33, down 4% over the past 24 hours.

Indicators Suggest Potential Price Decline

Historically, resolving congestion has led to price hikes in SOL. Yet, recent data from Artemis reveals a decline in daily active addresses from 1.9 million to 1.4 million within a week, suggesting a lack of market engagement. If this trend continues, SOL might struggle to regain its former price points.

Transactional Volume and Market Sentiment

Observed volume trends also indicate a bearish outlook. Data from Santiment reveals a decrease in SOL’s transactional volume, from $3 billion to $1.51 billion. Increasing volume amid falling prices signals heightened selling pressure, potentially driving SOL prices lower. Further support for this trend comes from declining Open Interest (OI) data, which shows a decrease in market liquidity.

Market Liquidity and Open Interest Dynamics

The OI for Solana is currently at $2.19 billion, reflecting reduced market positioning. This decrease in OI signals lower liquidity and a lack of bullish sentiment, making a substantial price recovery unlikely in the short term. In aggregate, this market behavior suggests a potential drop to the $155 level, as indicated by the decrease in active engagement and transactional volume.

Network Integrity and Validator Activities

In a related move, the Solana Foundation has removed several validators involved in malicious activities like sandwich attacks, which manipulate market prices to the attackers’ gain and detriment of network participants. This action underscores Solana’s commitment to maintaining network integrity but also signals the challenges faced in ensuring secure operations.

Conclusion

In conclusion, Solana’s ongoing network upgrades highlight its proactive measures to address congestion issues, yet market indicators point toward a continued decline in SOL prices. For investors, the current indicators suggest caution as the network navigates through these operational challenges. Future outlook remains wary unless network activity and investor confidence see a notable rebound.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin’s Potential Price Surge Backed by Key Indicators: STH-SOPR and Stock to Flow Ratio

The current indicators suggest that Bitcoin might...

MoonTrump Leads the Pack: The Hottest Altcoins in Turkey This Week

The latest data from CoinGecko...

Shiba Inu (SHIB) Burn Rate Soars by 2,682% Amid Modest Price Movement

Shiba Inu (SHIB), a popular Ethereum-based memecoin,...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Current Bitcoin Market Analysis: Key Insights on BTC Investor Trends and Miner Sales

Bitcoin continues to hover below the $66,000...

Ethereum’s (ETH) MVRV Surge Signals Potential Altcoin Market Rally: CryptoQuant Analysis

The Ethereum (ETH) on-chain metric points to...

Comprehensive Guide to MDX Coin: Features, Usage, and Price Analysis

MDEX platform operates across various blockchain networks...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin’s Potential Price Surge Backed by Key Indicators: STH-SOPR and Stock to Flow Ratio

The current indicators suggest that Bitcoin might be on the verge of a price recovery. Factors such as the rise in...

MoonTrump Leads the Pack: The Hottest Altcoins in Turkey This Week

The latest data from CoinGecko reveals the most popular altcoin projects in Turkey between June 15 and June 21, according...

Raboo Surpasses Dogecoin and BONK: Dominates the Meme Coin Market With AI-Powered Innovation

The meme coin market is undergoing notable shifts, especially among dog-themed cryptocurrencies. While Dogecoin (DOGE) and BONK...