|

Ethereum co-founder says Solana price could nosedive after $1 trillion crypto market crash

  • Ethereum co-founder Gavin Wood has warned crypto investors of a crash in Solana, BNB, XRP and Cardano. 
  • Solana recently suffered a blight of operational issues in the past and its blockchain is running thirty minutes behind schedule, after failure to process transactions for hours. 
  • Delay in transaction processing negatively influences staking rewards, fewer epochs affect earnings delegators on the Solana network. 

Solana blockchain slows down, fueling a bearish sentiment among investors. Ethereum co-founder has a negative outlook on Solana and predicted a market crash. 

Gavin Wood issues a stark warning to investors 

Ethereum co-founder issued a warning to altcoin holders against a drop in Solana price. Wood believes after losing $1 trillion in the recent bloodbath, the crypto market could witness further decline. Cryptocurrencies like Solana, BNB, XRP and Cardano could plummet in response to the price drop. 

Wood told Reuters at the World Economic Forum in Davos, 

I would hope that people pay more attention to what is belying the currency name when they get involved in a community, ecosystem, economy. The technology cannot prevent people from making mistakes but can help those who want to understand better the facts of the world, what they're buying.

The colossal crash in LUNA and UST sparked a doubt among crypto investors and led to fears among holders. Gavin Wood believes Solana price could swing wildly in response to the volatility in the crypto market. 

Solana suffers operational issues, slows down

At 3:34 UTC on May 28, Solana’s team announced that the blockchain clock was running 30 minutes behind the clock. Slow block times influence staking rewards negatively,

The status update reads,

On-chain timekeeping is running approximately 30 minutes behind that of wall clocks, due to longer-than-normal block time. While this has no impact on performance or network operations, the time reported by block explorers and dapps may not reflect wall-clock time.

The Solana blockchain has 400 milliseconds block time by design, however the 1-minute average now stands at 659 milliseconds. Since slow block time translates to a disparity with clocks, it reduces the staking rewards. Instead of 182 epochs annually (rewards are paid each epoch), there are fewer with delay in the blockchain. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

Ripple bulls build new support base amid RLUSD payments expansion

Ripple ticks up for the second day in a row on Friday, trading at $1.34. The remittance token holds above medium-term structural support; however, strong supply near $1.40 caps upside. A break above this area would reinforce the bullish grip.

Busy week for Ripple’s RLUSD: What changes for stablecoin holders?

Ripple’s RLUSD is gaining ground across institutional finance, with a major bank launching custody services, a new wallet integration making it easier for developers to build payments and agentic experiences on the network, and a brokerage platform planning to use the stablecoin for settlement.

Bitcoin Weekly Forecast: Macroeconomic headwinds, cooling demand cap BTC gains

Bitcoin extends its correction this week, trading below $82,500 on Friday, as selling pressure continues. Hotter-than-expected US CPI and PPI data point to broader inflation pressures and persistent geopolitical uncertainty, weighing on risk sentiment.

Bitcoin: Macroeconomic headwinds, cooling demand cap BTC gains
Bitcoin (BTC) extends losses this week, trading below $82,500 as of Friday as selling pressure continues. Weakening institutional demand supports this pullback as BTC spot Exchange-Traded Funds (ETFs) are on track to record a two-week withdrawal streak, reaching $146.19 million in net outflows through Thursday.