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