Solana’s price made a notable recovery on Monday after a sharp decline over the past seven days. This was supported by positive developments in the Bitcoin (BTC) and Ethereum (ETH) markets, which were accompanied by the approval of exchange-traded funds (ETFs) for both cryptocurrencies in Hong Kong.
Moreover, Solana addressed the ongoing network congestion issues with a new update aimed at fixing transaction errors and outages.
New update that addresses implementation bug
According to According to Mert Mumtaz, CEO of Helius Labs, Solana’s recent network congestion issues were attributed to an implementation error rather than a fundamental design flaw. Mumtaz clarified that Solana’s current situation is the result of an error in the implementation of a specific protocol.
According to to Anza, a spin-off of Solana Labs, Solana has released a new update to its validator client software to combat this. The update, v1.17.31, aims to reduce network congestion and will be followed by further improvements in v1.18.
Anza emphasized the importance of the update and urged MainnetBeta validators to adopt it. The improvements introduced in the update are expected to alleviate Solana’s persistent network congestion issues.
Further, validators were advised to upgrade their systems when there is less than 5% delinquency so that they have sufficient time to monitor the node after the upgrade.
Any issues encountered during the upgrade were to be reported to mb validators. Solana Status, a trusted source, confirmed the announcement and recommended the v1.17.31 release for general use.
Trent.sol, Solana’s developer and operations manager, emphasized that the effectiveness of the update would be proportional to its acceptance across the network.
While the improvements are primarily focused on Solana’s Stake Weighted Quality of Service (SWQOS) and may not result in significant changes to the reliability of non-stacked Tensor Processing Units (TPU) traffic, Solana users were advised to avoid payment delays during the upgrade process below 5%.
Additionally, Anza hinted at additional improvements in the pipeline, urging users to stay tuned for further updates.
Solana price recovers with a 7% increase
After unveiling updates to improve network efficiency, the Solana price has increased by more than 7%. This increase has helped offset Solana’s continued downward trend, which was nearly 21% over the past month.
Moreover, the Hong Kong SFC has also done so officially approved several Bitcoin and Ethereum ETFs, including asset managers such as China Asset Management, Bosera Capital, HashKey Capital Limited, and an in-principle approval for Harvest Global Investments.
This regulatory approval has not only positively impacted the prices of Bitcoin and Ethereum, but has also created a sense of positivity in the overall cryptocurrency market. As a result, the top 10 cryptocurrencies have witnessed significant upward trends, riding the wave of these developments.
Despite the recent rise in Solana’s price, SOL’s trading volume has fallen -44.70% over the past 24 hours, indicating a recent decline in market activity, according to CoinGecko. facts.
Solana’s current trading price of $151.40 represents the first obstacle on the cryptocurrency’s path to further price gains. If this hurdle is overcome, the next major resistance is at $170, which would mark a recovery from SOL’s gains made over the past month.
On the other hand, the $130 mark has proven to be a strong support level for Solana, which is the basis of SOL’s one-month bullish structure, which pushed the price to near three-year highs of $210 on March 18.
Featured image from Shutterstock, chart from TradingView.com
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