TVL, network outages, or derivatives: What's behind Solana's (SOL) 60%+ drop?

By  (contrib. Fatstack)
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SOL price is more than 60% away from its all-time high and data shows that it's not the network outages but the loss of territory to competing chains driving the correction.

https://bit.ly/3ucl2RF

The past couple of months have not been kind to cryptocurrencies. The sector's aggregate market capitalization plunged 50% from a Nov. 10 peak at $2.87 trillion to the current $1.44 trillion. Solana's (SOL) downfall has been even more brutal, presently trading at $88 after a 66% correction since its $260 all-time-high.

Pinning the underperformance exclusively to the recent network outages seems too simplistic, and it doesn't explain the accelerated decoupling over the past week, so let's take a look at what might be going on.

The Solana network suffered four incidents in the span of a few months. According to the project's developers, a sudden spike in the number of computing transactions caused network congestion, which crippled the network.

Interestingly, the network struggles with congestion since the developers advertise a 50,000 transaction per second (TPS) capacity. . . .