Solana to make a comeback after $25 million worth of SOL positions liquidated


  • Analysts on crypto Twitter buying the dip, expect SOL price to resume upward climb after dropping to $130.
  • Solana price has failed to recover from the drop triggered by a network outage on September 15.
  • One server in Amazon's data center accounts for 37.45% of Solana, essentially making it a "kill-switch" for future outages.

SOL consolidation continues, and analysts are convinced that the altcoin still has upside potential. 

SOL fails to recover outage-triggered drop, recovery expected

Solana's on-chain activity has exploded over the past four months and the altcoin posted over 118% gains over the past 30 days. Since a network-wide outage on September 15, the altcoin price has failed to recover, though. 

Proponents conclude that one of the key triggers in SOL's consolidation is the outage that lasted over 15 hours. Traders in the crypto community were initially drawn to the Solana network for its low-cost transactions and faster processing times; however, the downtime highlighted the need for better network infrastructure and further decentralization. 

Mira Christanto, a Senior research analyst at Messari, a crypto research and data platform, informed users that if 33% of Solana's network suffers an outage, the blockchain protocol will not validate transactions. 

Furthermore, this is a cause of concern for traders that emphasize on "decentralization", since 45% of Solana's validators are hosted in just two data centers. 

Interestingly, a single server in an Amazon data center (Amazon-02) holds enough stake in the Solana network to act as a "kill switch." Amazon-02 accounts for 37.45% of Solana that is currently staked. 

Despite the ongoing consolidation, @AltcoinSherpa, cryptocurrency analyst and trader, has decided to buy SOL once it hits $130. At the time of writing, SOL is trading at $140.54.

@Pentosh1, leading pseudonymous analyst and trader on crypto Twitter, observed that traders who tried catching the knife suffered losses. The analyst is surprised by the rebound in SOL price after capitulation. 

FXStreet analysts expect the altcoin to rally to $276.

 

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