In a refreshing reversal of fortunes, Solana’s price exhibited an impressive rebound on Monday, distancing itself from the sharp decline it suffered in the preceding seven days. This rallying momentum was also fuelled in large part by the favorable climate generated in the markets of Bitcoin (BTC) and Ethereum (ETH), courtesy the stamp of approval for exchange-traded funds (ETFs) specific to these two cryptocurrencies by the Hong Kong authorities.
The digital currency also took strides to address the recurring issues it was facing related to network congestion with the rollout of a crucial software update, developed with the intention to curb instances of transaction failures and sudden outages.
The prevailing congestion issues that have been plaguing Solana’s network in recent times were primarily caused by a bug that cropped up during implementation, as opposed to any inherent design flaw, stated Mert Mumtaz, CEO of Helius Labs. He explained that Solana’s current predicament stems from the faulty execution of a specific protocol.
In response to this, Solana Labs’ spin-off, Anza, disclosed that Solana has rolled out a fresh update to its validator client software in an effort to counter this problem. This latest update, titled v1.17.31, comes with the promise to alleviate network congestion and is expected to be followed by additional improvements in the release of v1.18.
Anza highlighted the significance of adopting this update for MainnetBeta validators and predicted that the refinements introduced via this latest upgrade have the potential to ameliorate Solana’s existing network congestion issues.
Validators were recommended to opt for the upgrade when they have less than 5% delinquent stake, which would afford them ample time to keep an eye on the node following its upgrade.
Solana Status, a reliable source, vouched for the latest announcement and endorsed the use of the fresh v1.17.31 release across the platform. The effectiveness of the update, it was pointed out by Trent.sol, Solana’s developer and operations manager, would directly depend on how widely it’s adopted across the network.
The primary targets of these advancements are Solana’s Stake Weighted Quality of Service (SWQOS), even though they might not make substantial contributions to the reliability of unstacked Tensor processing units (TPU) traffic. In the course of the upgrade, Solana users were instructed to keep their delinquency below 5%.
Anza also hinted at the existence of more enhancements in the pipeline, advising users to stay alert for more updates.
After the revelations about the updates aimed at bolstering network efficacy, Solana’s price witnessed an over 7% surge. This upward leap has assuaged the incessant downward trend experienced by Solana, which translated into a nearly 21% fall over the course of the last month.
Furthermore, the Hong Kong SFC greenlighted proposals for both Bitcoin and Ethereum ETFs, including several asset managers such as China Asset Management, HashKey Capital Limited, Bosera Capital, and Harvest Global Investments.
This regulation approval not only spurred a positive impact on Bitcoin and Ethereum prices but also fostered a wave of optimism in the entire cryptocurrency market. Consequently, the leading ten cryptocurrencies have enjoyed notable uptrends, powered by these developments.
Despite Solana’s price surge, SOL’s trading volume has dipped by 44.70% in the last 24 hours, signaling a downturn in recent market activity, as confirmed by CoinGecko data.
Currently trading at $151.40, Solana’s path to further price gains has come across its first challenge. If it manages to climb this hurdle, the next significant resistance tier is expected to be around the $170 mark, which would symbolize a retrieval of SOL’s gains accrued over the previous month.
On the flip side, the $130 margin has been a robust support level for Solana, acting as the bedrock of SOL’s one-month bullish structure, which facilitated its price rally to almost three-year highs of $210 on March 18.
