Layer 1 Blockchains Gain Momentum
Open-source blockchain networks like Ethereum enable the creation of decentralized economic systems in software. Ethereum’s design anticipated the need for interoperable blockchains serving diverse purposes.
Following Ethereum’s success, developers increasingly build applications on its blockchain, further fueled by the rapid growth of NFTs. As a result, ETH’s value has surged to $3,540 (at the time of writing).
Similarly, Solana faced an 18-hour outage due to overwhelming transaction volume, spotlighting Layer 1 blockchains like Ethereum, Solana, and Cardano.
Altcoin Season Heats Up
Solana and Cardano have seen heightened activity, with Cardano launching smart contracts in September. The Cardano ecosystem now hosts numerous emerging projects across categories.
Before Solana’s shutdown, solscan.io data showed instability caused by resource exhaustion, leading to a denial-of-service event. Validators prepared for a potential restart during the outage.
Transaction Overload and Market Impact
The Solana Foundation attributed the outage to a flurry of transactions that overwhelmed the network. Engineers couldn’t stabilize it in time, and SOL’s price dipped to $145** during the downtime. Post-recovery, it rebounded to **$151, solidifying its position as the 6th-largest cryptocurrency by market cap (~$50B), surpassing XRP and Dogecoin. Many now view Solana as a potential "Ethereum killer."
👉 Discover how Solana compares to Ethereum
Why Solana Stands Out
- Cost Efficiency: At $10 per million transactions, Solana offers cheaper fees than Ethereum.
- Ecosystem Growth: Over 300 projects run on Solana, with $500M+ in stablecoins locked in its network.
"The Solana outage highlighted both its scalability challenges and its rapid adoption."
FAQ
Q: What caused Solana’s outage?
A: A surge in transactions led to resource exhaustion, crashing the network for 18 hours.
Q: How does Solana’s throughput compare to Ethereum’s?
A: Solana processes 65,000 TPS vs. Ethereum’s 30 TPS, but its centralized validators pose trade-offs.
Q: Is Solana a good investment post-outage?
A: Its ecosystem growth and low fees make it compelling, but scalability risks remain.
👉 Explore Solana’s latest price trends
Final Thoughts
Solana’s outage underscored its popularity and technical hurdles. While its speed and affordability attract developers, the network must address stability to sustain long-term growth.
Keywords: Solana, Ethereum, Layer 1, blockchain outage, cryptocurrency market, NFT, smart contracts, transaction fees
**Notes**:
- Removed sensitive/IR links (Telegram, Youtube).