- Tristan Frizza discusses Solana’s congestion issues due to DeFi and meme coin hype, impacting transaction costs and security.
- TD Sequential indicator suggests potential SOL price drops of 17% to 28%, predicting a decline to $152 or $127.
Solana is increasingly gaining attention as its price soars while other cryptocurrencies face resistance from bears actions. Now, its network is under scrutiny to assess its future potential.
Now, the network has a highlight to see its potential for the future. Recently, Tristan Frizza, founder and CEO of Zeta Markets, highlighted the challenges Solana’s network faces due to frequent congestion.
Challenges in the Solana Network: Addressing Congestion and Security Concerns
In an interview, Tristan discussed the closure of Jito’s meme pool service when the network’s congestion occurred. In his view, the congestion in the Solana network was due to a surge in user activity, which, as we know, was caused by the hype around DeFi and meme coins.
What is underlined is, the congestion not only caused technical problems, but also attracted the interest of the evil actors to attack. The impact, it’s messing up aspects, like the issue of transaction costs in swaps, sandwiching attacks and so on.
The CEO of Zeta Markets stressed the importance of community-driven solutions as well as technological advances. Of course, he suggested some constructive steps to improve the scalability and efficiency of Solana, including further optimization of the command book to prevent Solana’s runtime computing environment from occurring.
According to reports, one of the expected solutions is the launch of Solana version 1.18, which aims to address inconsistencies in the local free market. Tristan also suggested speeding up the development of Solana’s roll-up solution that would shift order delivery and liquidity provision to Layer 2 (L2), relieving the problem of underlying chain congestion.
It’s known, last month, the Solana network stopped processing the blocks. A blockchain software developer and Solana validator, Laine, clarified that this failure was due to a decrease in mainnet performance.
Previously, in February 2023, Solana’s validator had to restart the network twice because of an unknown error that caused the total cessation of economic activity, as previously reported by ETHNews.
TD Sequential Indicator’s Impact
On the other hand, popular analyst Ali Martinez recently tweeted that TD Sequential has presented a sales signal on Solana’s daily chart.
The TD Sequential presents a sell signal on the #Solana daily chart!
Since December 2023, every time this indicator suggested selling, the price of $SOL dropped by 17% to 28%. A similar outlook could see #SOL retrace to $152 or even $127. pic.twitter.com/3JbXdabK3v
— Ali (@ali_charts) March 14, 2024
According to Martinez, as of December 2023, whenever this indicator suggests a sale, the SOL price drops by about 17% to 28%. With this consistent trend, similar prospects could lead to a SOL rebound to $152 or even $127.
At the time of writing, the price of SOL had slightly fallen 0.56% in the last 24 hours, fell to price of $171.73. But, this represents an increase of 17.42% over the past 7 days.