Solana (SOL) with price gains despite technical problems

Dec 16, 2021

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Solana (SOL) with price gains despite technical problems

Originally posted here.
By: guido

Overview

Solana (SOL) temporarily saw a good 10 percent gain in the price curve at the end of the week. Concerns are caused by recurring technical […]

The Post

Solana (SOL) temporarily saw a good 10 percent gain in the price curve at the end of the week. Concerns are caused by recurring technical problems in Solana’s ecosystem.

The overall crypto market is undecided these days, intermediate highs are followed by significant price corrections again. In the meantime, it seemed as if Solana (SOL) could decouple from the trends. On Thursday, the price of SOL jumped to levels of over 180 US dollars within a few hours, which corresponded to a plus of a good 10 percent. In parallel, Solana’s market capitalization also reached around $55 billion again. But the optimism at Solana is clearly clouded by technical difficulties.

Because at the beginning of the week, the debut of the NFT project SolChicks based on Solana reported right at the start via Twitter : the high demand of tens of thousands had brought Solana servers to their knees. The problem could be solved afterwards. But SOL was already offline for 17 hours in September, when a DoS attack paralyzed the network and it only worked again by rebooting and upgrading. Such DoS attacks on Solana reportedly caused noticeable delays in transactions in early December as well.

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Is Solana reaching its technological limits?

Solana promises to be able to process up to 50,000 transactions per second (TPS) without problems. In the September DoS attack, up to 400,000 TPS had accumulated, and now with SolChicks, too, an emergency mechanism apparently intervened. But the recurring critical situations at Solana raise doubts that they can be reliably prevented. Solana wants to remain technologically flexible and not create artificial hurdles. On the other hand, network outages are poison for the image, as Solana scores points with DeFi, where investment strategies are often timed to the second.

Basketball legend Michael Jordan plans Solana project HEIR

Some analysts explain the gains at SOL, despite the technical problems, by basketball legend Michael Jordan announcing his Project HEIR. Together with son Jeffrey, Jordan plans to launch a platform and tokens next year that will bring professional athletes and their fans together. HEIR will include NFTs as merchandise and exclusive promotions for fans and their idols. Michael Jordan is considered by many to be the best basketball player of all time, which guarantees HEIR a lot of attention right from the start.

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Conclusion: Price forecasts at SOL undecided

At the beginning of November, SOL reached its all-time high of 260 US dollars, which is valid until now. Predictions on Solana’s price curve by readers of CoinMarketCap paint an undecided picture: for the end of 2021, SOL is expected there around 185 US dollars, but for the end of January 2022, only 171 US dollars. Meanwhile, two things are clear: Solana continues to attract exciting projects such as HEIR, and at the same time must seriously address how to keep the network stable even in phases of very high demand.

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