SOL price tumbles as Solana goes through DoS attack

The fastest blockchain in the world suffered a cyber-attack, a denial-of-service, earlier on Tuesday.
Validators in the Solana network are preparing for a potential restart.
The network is gathering criticism for its centralized nature when compared to rival Ethereum.

Solana price has plunged since the announcement of the cyber attack on the protocol’s network; traders await further updates from the Ethereum-killer.

Last transaction block was added on Solana over 3 hours ago; the network has hit a pause

Solana network is currently the target of a DoS attack. A Denial-of-Service attack is an attack meant to shut down a network and make it inaccessible to its intended users. It stops legitimate users from accessing the service and does not typically result in a loss of information or assets.

The victim network does, however lose time in recovering from a DoS attack. The blockchain platform announced on Twitter that it was experiencing intermittent instability. After 45 minutes of persistent instability, the network informed users.

Solana mainnet-beta is experiencing intermittent instability. This began approximately 45 minutes ago, and engineers are investigating the issue.
— Solana Status (@SolanaStatus) September 14, 2021

Resource exhaustion was identified as the cause behind the denial of service. The Ethereum rival stated that validators, considered the backbone of the system, are preparing for a potential restart.

Following Solana’s announcement, criticism over its centralized nature started pouring in. For over three hours, the network has not signed or approved any transaction on its blockchain.

The criticism is targeted towards Solana’s semi-centralized structure, which the blockchain network relies on, for speed. The announcement triggered a downtrend in Solana price; it was trading at $159.81 at the time of writing.

Larry Cermak, Director of Research at The Block, attributes the current outage to a highly anticipated Initial Dex Offering scheduled at 12:00 PM UTC. Excessive demand is identified as the leading cause of an outage like the one seen on the Solana blockchain.

The reason I see floating around is that there was a highly anticipated IDO scheduled at 12pm UTC and too much demand caused an outage. Not sure about the technical details though
— Larry Cermak (@lawmaster) September 14, 2021

Earlier this week, FXStreet analysts evaluated Solana and noted that the altcoin hadn’t budged during the overall market crash and predicted a bullish target of $276 before the DoS attack incident.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram