Solana (SOL) price reverses bearish trend, but 1 problem remains

Solana price (SOL) is showing an unusual growth trend after falling to $137 earlier this week. The coin is experiencing a unique price recovery despite a major network issue with its DEX aggregator Jupiter.

Solana price, Jupiter and the panic about network disruptions

As first reported to the community by X user @ItsDave_ADA, the Jupiter platform has stopped processing transactions for hours. He claimed that so far, about 81.36% of all transactions on Jupiter cannot be processed. This issue is particularly severe on the Jupiter Aggregator v6 engine.

The Solscan data shows that hundreds of transactions cannot be processed. Dave's revelation has sparked different schools of thought in the community. While some are mocking him for spreading fear, uncertainty, and doubt (FUD) about Solana, others couldn't make sense of the Solscan data.

On the Jupiter X side, it is worth mentioning what could be considered a glitch. Solana investors remain unfazed and it remains uncertain when this transaction glitch will resolve itself. This is evident in the current price action of the coin.

At the time of writing, Solana price was trading at $145.92, up 3.3% in 24 hours. This recovery comes after declines of more than 3% and 15% in the past seven and 30 days, respectively.

Solana history with outages

Solana is a very fragile protocol considering its history of network outages and disruptions in general, and if the trend of Jupiter transaction failures continues for a longer period of time, it could trigger an unforeseen relapse of the ecosystem.

Over the past year, Solana has experienced a series of network outages that have caused a major setback to its growth efforts. Notably, some of the biggest outages occur on the mainnet. However, some outages also occur on the blockchain's dominant decentralized applications, making the source of attacks more complicated.

The series of attacks that rocked Solana may have been due to the explosion of its memecoin ecosystem. Judging by the success of tokens like BONK and dogwifhat (WIF), developers have been uncontrollably dumping memecoins onto the market. This eventually triggered a bottleneck that fueled the series of outages recorded earlier this year.

Solana developers, including co-founder Anatoly Yakovenko, had to find a solution to this threat. The team deployed a comprehensive fix to the mainnet in Q1. As previously reported, the protocol also deployed a patch to improve network stability about a week ago.

It is safe to assume that the Solana developers have been very busy since last year and that this Jupiter bug will likely prevent them from producing lumber.

Institutional introduction through ETF in sight

Solana is also aiming for widespread adoption among institutional investors by bypassing the entire retail aspect of its ecosystem. Fund managers are predicting the eventual launch of a spot Solana ETF product in the United States. VanEck and 21Shares have previously championed this product, but there is a roadblock at Cboe.

Although Cboe has withdrawn the two companies' filings, the SOL ETF is gaining traction in other countries. Brazil recently gave the ETF product the green light, setting an important milestone that other countries are now looking to follow.

In addition to Brazil, Canada is also considering its first Solana ETF via QSOL.