Fintech and Web3 experts say that an altcoin project has lost trust due to the unstable network. The altcoin project in question is Solana (SOL), as you predicted.
Solan is losing confidence
The development team is trying to position decentralized finance (DeFi) Solana (SOL) as an Ethereum (ETH) competitor. That’s why Solana is among the most watched altcoin projects. But Solana’s growth is threatened by network-related issues such as frequent outages.
Accordingly, according to a report shared by Finder on October 27, about 33% of industry experts said they lost their trust in the Solana team mainly due to the network outage issue.
Expert feedback on trust in Solana team / Source: FinderAltcoin growth trajectory
Despite the concerns, 37% of 55 fintech and Web3 experts still say they have full confidence in Solana. Also, 30% of respondents are optimistic that network challenges are part of their growth trajectory. Paul Levy, senior lecturer at the University of Brighton, explains:
Solana is in recovery mode. Despite some technical glitches and network outages, it has a high reputation in the scientific community. Their problems will be short-term and shared with many other players. It has a potentially positive long-term future.
Specifically, Solana’s primary cause of outage has not been identified. This is a factor that divides experts into two. Indeed, 22% of the panel said outages were due to low-cost transactions. The rest raise the bigger problem of centralization. MetaTope co-founder Walker Holmes says:
SOL has one of the strongest communities in the game. We’ve seen users get burned in the worst way. Often a great deal of centralization is at the heart of the problem.
Meanwhile, as Cryptookin.com reported, Solana continues to record significant growth, with Solana-based transactions exceeding 100 billion.
Impact of network outages
However, Solana co-founder Anatoly Yakovenko calls network outage difficulties a ‘curse’. This, in turn, turns out to be a major pain point for Blockchain. Despite the blackouts, the network shows that Solana’s integrity remains intact. Solana, in 2022 alone, the network experienced at least six significant outages. The last event was recorded on October 1 and lasted over six hours.
Meanwhile, experts generally predict that Solana will likely trade at $35 by the end of 2022. At press time, the altcoin was trading at $30.73 with a loss of about 1.5% in the last 24 hours.
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