Solana wipes out nearly $1.5 billion in one week as network-related hacks increase

The decentralized financial asset (DeFi) Solana (SOL) is experiencing a large influx of capital, as the network faces various challenges, including hacks and system outages. The incidents appear to limit Solana’s ability to acquire existing platforms such as Ethereum (ETH).

Notably, as of October 13, Solana’s market capitalization was $10.6 billion, down more than $1.43 billion or 13% from the $12.08 billion recorded on October 6, according to CoinMarketCap data.

Solana seven day market capitalization chart. Source: CoinMarketCap

Although Solana’s sharp drop in market capitalization correlates with the general decline in the crypto markets, the asset is affected by a growing number of related network exploits that have accelerated in recent months.

The latest drop comes after Solana-based Mango Markets DeFi was hit by more than $100 million of abuse. The incident witnessed intruders manipulation of oracle price dataThis allowed them to obtain loans in unsecured cryptocurrency.

It’s worth noting that this is the second Solana-related hack in just under two months. As Coinphony reported on August 5, the Solana software wallet hack also resulted in a loss of at least $4.5 million.

Solana County

At the same time, the network has experienced many outages that seem to be discouraging investors. The most recent outage was recorded on October 1 and lasted at least six hours. Overall, in 2022 alone, the network suffered at least five major outages, with some days running out.

In addition to network issues, Solana’s team continues to alter assets as an “Ethereum killer.” In this line, the network is witnessing significant developments that have led to significant achievements, such as reaching more than one billion transactions since the platform was launched in 2020.

Notably, Transaction Milestones validate Solana’s status and potential in the crypto market as the metric appears to be unaffected by network issues. At the same time, the transaction is in line with SOL’s core principles of supporting instant transactions at low cost.

Meanwhile, Solana price is also trending in the red after the last cut. At press time, the asset is trading at $29, having corrected nearly 6% in the past 24 hours.

Ultimately, analysts argue, for Solana to realize his potential, the blackout issues must be addressed. The situation still casts doubt on the network’s ability to reach high performance.

warning: The content of this website should not be considered as investment advice. Investments are speculative. When you invest, your capital is at risk.

Solana’s post wiped out nearly $1.5 billion in a week as network-related hacks increased for the first time on Coinphony.

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