Once a worthy competitor of Ethereum, Solana’s image in the market may now be taking a back seat. It had a nice ride in the previous year, but the current year has brought in some worries for the network.
Solana once promised to deliver faster transactions at the lowest cost. It stood to its commitment but left a margin for negative elements to exploit, which is hurting its image everywhere in the world now.
The Shine Is Wearing Off
It turns out that all the hype surrounding Solana was based on technology and celebrity endorsements. It went up by 11.20% in the past seven days to now trade at the value of $116.52. Even though it is estimated to touch the mark of $160 by the mid of 2022, people are less enthusiastic about it. You can get more details here about the future of Solana. This will help you judge how certain factors may or may not affect its price.
As the figures show, Solana is standing on an excellent mark in the Crypto ecosystem. However, behind-the-back talks are now very different among the community members.
This comes to light after Solana reported a series of issues that directly or indirectly affect its own ecosystem. One such issue to be reported was the security breach by a hacker.
Reportedly, a hacker was able to lay his or her hands on the imperfection of Wormhole, a cross-chain bridge. The hacker went on to steal around $320 million after finding out the flaw in Wormhole.
This led to the team of Solana being questioned by many people. It is common to have a security breach, but the theft of such a huge amount is a matter of concern.
The forensic analysis highlights that the hacker getting away with $320 million worth of wrapped Ethereum could have been because of the poor interface of Solana with Wormhole.
Despite many members insisting on taking a note from the security side of Vitalik Buterin’s famous Blockchain Trilemma, Solana ended up neglecting all of them even though it is one of the top ten Cryptos in the world.
Jump Capital, a Chicago-based investment firm, swooped in to save the day for Solana. The investment firm donated its portion of Ethereum to offset the loss that it suffered.
Markets calmed down, but it brought another issue to light – the outside role of Venture Capitalists in the blockchain. It is being reported that Solana has allotted a higher number of shares to professional investors, probably giving them a higher say in the network.
This has a positive side, too, as the members will get benefits after the token lock-in period expires and all the professional investors release their holdings in the market.
Like every other cryptocurrency, Solana has begun suffering from network congestion. Experts say that it is because of the deployment of spam and bots. Members are calling the congestion issue ironic as Solana has often boasted itself of offering a higher speed.