Solana prices drop as network outage occurs for the fourth time this year. SOL prices have come down 82% in 2022, as high inflation hits the crypto market too.
Solana Suffers Major Outage Once Again
Solana faced a three-hour outage, and prices slipped 5% in the crypto market on Friday. Investors faced anxious moments as processing transactions got disrupted. SOL prices are at $32.53 as on October 2, 2022.
It is the fourth major outage for Solana. In January, the Solana network faced a string of outages as the network went offline and transactions halted for most of January. Solana prices have come down 82% in 2022. SOL prices were at $179 in January 2022.
Last September, Solana had an outage problem of more than 15 hours. Prices dropped as temporary failures affected crypto transactions on the Solana network.
On Friday, the Solana network made a post on Twitter that the Solana network experienced an outage that prevented the processing of transactions. It is a misconfigured node that caused the network failure. The Solana team assured that network developers were resolving the issue.
Solana, also known as Ethereum killer, is a popular blockchain for decentralized applications. It is well-known for minting non-fungible tokens and ranks behind Ethereum and Cardano as proof of stake blockchain. However, the outage brought down Solana prices.
Solana was trading at a high of $48.34 and a low of $30.03 in August 2022. Solana is trading at $32.53 at the close of September after the network experienced an outage and did not process transactions on Friday.
High Inflation Hits the Crypto Market
High inflation has put the cryptocurrency market under high pressure. The global market cap has fallen below the $1 trillion mark as crypto prices started to slide with high volatility. To control inflation, the central banks have hiked interest rates. The US Dollar gained strength as a safe-haven currency. But the forex and the crypto markets have become volatile, showing signs of weakening.
Crypto investors face severe losses as crypto prices dropped in 2022. The global crypto market cap slipped below $1 trillion on the last day of September. It was trading at $985 billion, according to data from the crypto market.
The Fed hiked interest rates as high inflation hit the country. Inflation is at a 2-decade high in the US. The crypto market is also under pressure, as top cryptocurrencies shed prices in 2022. Bitcoin and Ethereum prices show weakness, with inflationary concerns hitting the crypto market.
BTC prices were trading at $43,000 in January 2022. ETH prices were at $3407 in January 2022. The two leading cryptocurrencies have lost more than half their value in 2022.
BTC prices were trading above $20,000 for most of September but started October with a weak note. Bitcoin prices closed at $19,200 in September, unable to hold on to $20,000.
BTC prices rose to $22,500 in mid-September but could not sustain the upward move and closed below $20,000 last week. However, BTC prices are up 0.89% over the past seven days.
Ethereum prices hit a high of $1,770 in September but slipped below the psychological level at $1,300 in the last week of September. ETH prices were at $2,018 in August 2022.
Polkadot, Solana, and XRP figures saw marginal gains while Ethereum and Bitcoin figures weakened. MATIC cryptocurrency has been resilient against the weakness prevailing in the crypto market.
Dogecoin, the first meme coin, faces many challenges from Shiba Inu. Big Eyes Coin is another meme coin that challenges the Doge. The cat-designed Big Eyes offers fresh anticipation for investors, especially as the crypto market has been declining. Shiba Inu, an Ethereum-based blockchain, is another meme-based crypto that is trading flat at $0.00001097 at the beginning of October.
US Dollar Above 110 Mark
Rising inflation in the leading economies, the US, the UK, and the EU, is the reason for the weakness prevailing in the crypto and the forex markets. The US Dollar has been highly volatile with the weakening economy in the US.
The US Commerce Department reports concern over the weakness in GDP figures for the last two quarters. High inflation, energy crisis, and hike in rates, are some economic conditions prevailing in the US, the UK, and the Eurozone. It has led to investors shedding their investment value in the crypto market and fleeing to safe-haven assets like the US Dollar and gold.
There is a wide calling for regulatory measures on the crypto market. The Australian central bank has asked for regulatory papers to be completed by 2023. In the US, the Federal Reserve and the European Central Bank have asked for broader regulations on the DeFi.
The crypto market has lost most of its investors in 2022. October does not look promising for the crypto market as investors panic over the worsening economic situation in the leading countries.