Solana Price Jumps 7% On Bitcoin And Ethereum ETF Approvals, Network Congestion Update

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On Monday, Solana’s price bounced back significantly after a week-long slide. This upward trend was fueled by favorable news in the Bitcoin and Ethereum markets, which included the announcement of approved exchange-traded funds (ETFs) for those cryptocurrencies in Hong Kong.

Moreover, Solana recently released an update to tackle its persistent network congestion problems, with the goal of resolving transaction mishaps and downtime.

New Update Tackling Implementation Bug

Mert Mumtaz, the CEO of Helius Labs, explained that Solana’s recent network congestion problems were caused by a programming error in the implementation of a particular protocol, rather than being a fundamental issue with Solana’s design.

Based on Anza’s announcement, Solana, an offshoot of Solana Labs, has rolled out a new version, v1.17.31, of its validator client software to address network congestion issues. A future update, v1.18, will build upon these improvements.

Anaza strongly highlighted the importance of the new update and encouraged MainnetBeta validators to implement it. The improvements in this update aim to address Solana’s current network traffic problems.

In addition, validators were encouraged to update their systems before reaching a 5% delinquency rate. This gives them ample opportunity to observe the node’s performance post-upgrade.

If you came across any problems while upgrading, please bring them to the attention of mb-validators. According to Solana Status, a reliable resource, the v1.17.31 release is now recommended for widespread usage.

Trent.sol, who is in charge of development and operations at Solana, stressed that the impact of the update would depend on how widely it is adopted throughout the network.

During the update, Solana focused on enhancing its Stake Weighted Quality of Service (SWQOS), which might not significantly affect the unstacked Tensor processing units (TPU) traffic’s dependability. However, to ensure a smooth transition, Solana users were urged to maintain their delinquency rate below 5%.

Anza also suggested that there were more improvements coming soon, encouraging users to keep an eye out for future announcements.

Solana Price Rebounds With 7% Surge

Following the announcement of improvements to increase network performance, the cost of Solana has risen by more than 7%. These gains have partially made up for the previous month’s decline of approximately 21%, allowing for a temporary halt in the negative trend.

The Hong Kong Securities and Futures Commission (SFC) has given the green light to several Bitcoin and Ethereum exchange-traded funds (ETFs) from firms like China Asset Management, Bosera Capital, HashKey Capital Limited, and Harvest Global Investments, with the latter receiving an in-principle approval.

The regulatory approval has brought good news to Bitcoin and Ethereum prices, and it has also boosted the confidence of investors in the cryptocurrency market as a whole. Consequently, the leading 10 digital currencies have experienced notable surges, benefiting from this positive turn of events.

Although Solana’s price has risen significantly in the past day, the trading volume for SOL has dropped by 44.70% based on information from CoinGecko, suggesting less investor interest and market action.

At its current price of $151.40, Solana encounters the initial challenge in its attempt to increase further. If this barrier is overcome, the next noteworthy resistance emerges at $170, marking a potential recovery of Solana’s losses from the past month.

The price of Solana has consistently found buying interest around the $130 mark over the past month, serving as a solid foundation for its bullish trend that pushed SOL‘s price up to nearly $210 – a three-year high reached on March 18.

Solana Price Jumps 7% On Bitcoin And Ethereum ETF Approvals, Network Congestion Update

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2024-04-16 00:05