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Solana (SOL)

Solana continues to capture investor interest despite recent denial of service attack

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  • Solana faced a major outage last week, which it initially explained was due to resource exhaustion.
  • The Solana Foundation added that the network stall was due to a denial of service attack.
  • Despite the roadblock last week, investors seemed to be undeterred as SOL investment inflows of nearly $5 million were recorded.

Solana faced a major roadblock last week, which witnessed its network go offline for over 17 hours. Despite the outage, SOL continued to gain traction among institutional investors as it recorded inflows of nearly $5 million last week.

Solana addresses reasons behind rare outage

The Solana Foundation issued an explanation that pointed out that the network was overwhelmed by a flood of incoming transactions, which reached over 400,000 per second at one point. 

The network was flooded at the launch of an initial decentralized exchange (DEX) offering that was hosted on the Solana DeFi protocol Raydium. The transactions involved overburdened the network’s distributed nodes, leading to a crash due to the amount of memory being used. This eventually led to the halt of the network’s block production as it could not reach a consensus over the blockchain’s status.

The Solana Foundation’s report stated that the cause of the network stall was due to a denial of service attack. The blockchain’s validators decided to update and restart the network, which created a hard fork from the last confirmed block.

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The effort to coordinate the restart effort required 80% of validators to get the network to start running again after 14 hours. According to the report, this issue was a rare occurrence, and the Solana Foundation aims to complete a further robust technical postmortem in the coming weeks.

Despite the setback on the network, Solana investment products witnessed inflows of $4.8 million last week. According to the report from CoinShares, this suggests that investors were happy to shrug off last week’s attack, further indicating that they view it as a small hurdle rather than an inherent issue with the network.

Solana price slides, but support is nearby

Solana price has fallen since the attack last week and appears to be searching for support. SOL may be trapped in a tight range for the time being but could discover a foothold nearby.

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Solana price has been teetering within a descending parallel channel on the 4-hour chart. The prevailing chart pattern suggests that SOL is consolidating following its all-time high on September 9.

Although the technical pattern suggests that the sentiment is bearish, Solana price should be able to discover immediate support at the 200 four-hour Simple Moving Average (SMA) at $128. The following line of defense will emerge at the lower boundary of the parallel channel at $120, which sits near the 50% Fibonacci retracement level.

Given that Solana price was able to endure the attack without slicing below the downside trend line of the technical pattern, further losses are not expected unless a massive wave of sell orders materialize.

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The next line of resistance for Solana price is at the middle boundary of the chart pattern at $142, which sits near the 61.8% Fibonacci retracement level. 

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Solana

$2.6 Billion Bug in Solana Program Library Disclosed: Details

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Researchers from Neodyme, a boutique team focused on security audits, noticed a critical vulnerability in Solana’s codebase

In their latest blog post, crypto security researchers from Neodyme shared the design of an attack that may be profitable for “expensive” tokens integrated into Solana (SOL) ecosystem.

“One Lambo per hour”

As per the announcement shared in Neodyme’s social network and blog, its members noticed a bug in the token-lending contract of the Solana Program Library. As such, it affected numerous Solana-based DeFi protocols.

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Aggregated total value locked (TVL) at risk was over $2,600,000,000. The design of the hypothetical attack was quite simple: while depositing n fractional tokens, a user is able to withdraw n+1 fractional tokens.

With Solana’s native token, SOL, it will not be effective economically, as 1 Lamport (the smallest fraction of SOL, like Satoshi for Bitcoin, Wei for Ether and Drop for XRP) is only worth about $0.000000220.

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However, for Ether and Bitcoin, this scenario can be very profitable. With some technical upgrades, the attack can be executed about 300 times per second. In this case, losses can be dramatic:

We can get this transaction included about 300 times per second, stealing $7500 per second or about $27 million an hour (that is one Lamborghini Huracan every minute).

Bug fixed

In automated mode, this attack becomes profitable even for FTT and RAY tokens.

On Dec. 2-4, Neodyme’s representatives contacted a number of decentralized finance protocols (DeFis) on Solana, e.g., Larix, Solend, Tulip, Accumen, Soda and so on.

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All teams fixed the bugs in their architecture. Yesterday, software engineer Jordan Audet-Sexton shared in GitHub that the issue is fixed in Solana’s main codebase as well.

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Ethereum

Here’s What’s Next for Ethereum Rivals Solana and Avalanche, According to Analyst Nicholas Merten

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Prominent crypto analyst Nicholas Merten is taking a look at two layer-1 digital assets stacked up against the Ethereum (ETH) trading pair.

In a new strategy session, the host of DataDash tells his 486,000 YouTube subscribers where he thinks smart contract platforms Avalanche (AVAX) and Solana (SOL) are headed.

According to Merten, it is better to compare both coins to ETH rather than the US dollar or Bitcoin (BTC) as Ethereum’s greater success in recent years makes it a better barometer than Bitcoin.

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“If you’re really looking to see if your play is outpacing others in the market, you want to take a look against Ethereum. It is the second-largest cryptocurrency in this space and it has been outpacing Bitcoin around 380% to 400% in this cycle alone since 2019.

So we want to be able to find plays that are outpacing Ethereum because Ethereum is a really solid bet. It’s a really good medium-risk, medium-reward play.”

Source: Nicholas Merten/YouTube

Looking at Avalanche, Merten says that a local top might be in for the AVAX against ETH after the altcoin’s massive rally in the last few months.

“Avalanche has done phenomenally well against Ethereum. If you take a look back here since August, it’s up 422% against Ethereum. Great rally, even after the [recent] pullback here…

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When I look at this chart I definitely like seeing an asset that performs well against Ethereum, but each time it’s come up to this range [0.034 ETH or $139.21] historically, it’s been dragged down…  

I think that again we might see some kind of repetition, or at least a revisit down to the previous support range [0.014 ETH or $57.32], which means that’s it probably going to go down a little over 35% to 40% against Ethereum. A pretty decent decline.

At time of writing, AVAX is down 1% on the day to $107.20.

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As for Solana’s price action against Ethereum, Merten notes that the pair is flashing a bearish pattern after printing massive rallies in the last 18 months.

But to be completely frank as a trader, Solana’s had many rallies in the past. It’s had one back here [from July to August of 2020], 336% rally in price. Then back here [December of 2020], if you want to take from the lows, in this case, 1,000% move, massive multiples in price.

We take a look here as well, from the recent rally here [August 2021] into September, very similar to history, a little over 350% to 400%. Not a bad rally.

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But to be completely frank, we’ve been stagnant since September generally. The trend is starting to fade here. We don’t have that same momentum, and it’s seeing if it can hold out against Ethereum.

If you break below this range here [0.046 ETH or $188], I think it’s very favorable that Ethereum is going to start to outpace Solana as well as other major layer-1 plays.”

Source: Nicholas Merten/YouTube

Solana is currently down nearly 10% and trading at $203.79.

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Solana

Solana (SOL) vs Polkadot (DOT): Features and Perspectives

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Decentralized applications (dApps) have found their application in different directions: online games and virtual casinos to financial projects. A common problem for developers and users is the speed of the network bandwidth. The most common blockchain for dApps is Ethereum. However, the increased demand is overwhelming the platform. The race for performance leads to the emergence of new projects. Among such projects, Solana and Polkadot are the most popular. Let’s compare these projects and Polkadot with the DOT token vs. Solana with the SOL token.

Distinguishing Features of Solana and Polkadot

Solana cryptocurrency has many features that make it stand out among hundreds of other digital assets:

  1. The architecture is theoretically capable of processing up to 710,000 transactions per second. So far, a result of 60,000 operations has been achieved. But even this figure makes it one of the fastest videos to use.
  2. The network is designed so that it can easily handle growing workloads. Several technological innovations, including the original Proof-of-History protocol, make this platform a flexible and highly scalable tool.
  3. The project has made savings in audience size. In 2021, several hundred thousand users will be using the Solana network in November. Thanks to this, it was possible to maintain a low price for transactions within the system and in decentralized applications on the site’s platform.
  4. A high degree of compatibility is achieved by eliminating the need for users to deal with shards or second-level systems. Solana can interact with other crypto platforms as well.

Polkadot features that make this project stand out in the cryptocurrency market:

  1. Fast transaction processing by distributing operations across parallel parachains.
  2. It is based on a completely decentralized network—user control.
  3. Simplified creation and connection of DeFi services.
  4. High interoperability. It is possible to interact with all parachains that are included in the network. Free transfer of assets and any data is carried out.
  5. No need to hard forks to implement updates.
  6. Providing complete security for all blockchain projects connected to the network.

The Future and Prospects of SOL and DOT

Serious partners believe in the Solana project. For example, in early June 2021, Solana raised more than $ 314 million through a private token sale. Significant investments followed from Andreessen Horowitz. This firm once invested in other well-known projects (Skype, Facebook and Twitter).

Time will help to understand the platform’s applicability. As of July 2021, the system works in test mode, which does not cause failures. For example, the incorrect operation of the blockchain eight months ago led to the stoppage of all services for 6 hours.

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Polkadot is a promising digital currency that has not yet reached its maximum price because the project is under active development. In 2021, according to the Roadmap, ideas and services will be implemented that will positively affect the course. Large companies and developers will start buying tokens for free “slots” on parachains to become part of the decentralized ecosystem. This can lead to the growth of the system.

The outlook for dot vs solana depends on the amount of blockchain used. The number of their partners is growing. But so far, the projects remain at the level of a startup with good potential.

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