Solana (SOL) is poised for a rebound after its developers implemented a software update (version 1.17.31) to address network congestion issues that have plagued the blockchain in recent months. This update coincides with a 10% surge in SOL price over the past 24 hours, suggesting renewed investor confidence.
Solana Update Targets Congestion
The update comes in response to a significant rise in user activity, which saw transactional volumes peak at $4 billion in March, compared to an average of $500 million daily transactions in 2023. This surge, partly fueled by the meme coin frenzy, resulted in network congestion and a spike in failed transactions. Certain smart contracts were even flagging successful transactions as invalid.
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The new update prioritizes valid transactions from validators with higher stakes. This approach aims to improve service quality and prevent malicious actors from flooding the network with low-quality transactions.
More Updates Planned to Ensure Smooth Operation
While version 1.17.31 marks a positive step, Rex St John, head of developer relations at Anza, acknowledges that it’s the first in a series of planned updates. Further measures include encouraging validators to upgrade their nodes to ensure optimal network performance.
SOL Price Recovers After Recent Dip
Despite a 16% price drop over the past week and a 10% decline in the last 30 days, SOL has exhibited a welcome surge of over 9% in the last 24 hours. At the time of writing, SOL is trading around $153.96, a significant recovery from its recent slump that saw it fall below the $200 mark.
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Solana Foundation Committed to Network Improvement
Austin Federa, strategy lead at the Solana Foundation, recognizes the challenges in maintaining an optimal user experience. He emphasizes the need for further improvements despite the network currently processing approximately 700 transactions per second.
During a discussion at Paris Blockchain Week, Federa reiterated the foundation’s dedication to enhancing Solana’s performance. He stated, “The goal of the Solana project is to build the world’s fastest network that is open, permissionless, and decentralized. While the network’s consensus layer operates as designed, there is unanimous agreement on the need to refine the user experience.”
The successful rollout of the update, coupled with the rising SOL price, suggests that Solana is on the right track to address congestion issues and regain investor confidence. With ongoing development efforts, Solana aims to solidify its position as a leading blockchain network.