Solana can’t recover from the failed fork Solana
On February 25, the Solana network experienced a serious technical failure. The “Ethereum Killer” suddenly stopped processing transactions, and the blockchain’s throughput dropped by almost 99%. All because of fork Solana.
The Solana (SOL) blockchain stopped confirming user transactions at around 6am GMT. According to Explore, network throughput dropped from 4,300 to 42 transactions per second (TPS).
The problem encountered during the fork forced validators to downgrade to version 1.13. However, this was not enough to restore normal network operation. Users are still experiencing difficulties with transactions at the time of publication.
What’s going on with Solana? The community is not happy
Such an incident is far from the first in Solana’s history. In 2022, the network also repeatedly slowed down and sometimes shut down. And while Saturday’s failure did not have a direct culprit, it still caused a flurry of negativity from members of the crypto community.
Infrastructure provider Chorus One tried to present the event in a more positive light. He tweeted that yesterday’s event demonstrated how decentralized the network is, and received a lot of indignant comments in response. Users pointed out that decentralization does not solve the problem of the network’s poor design, and Solana proves itself time and time again to be a failure.
What’s going on with the price of SOL
At the time of publication, the native SOL blockchain token was trading at $22.87. After four failed attempts, the price of the asset has broken away from the downward resistance line and confirmed it as support. The daily RSI is above 50, which is also considered a bullish signal. Therefore, a break above $26.80 is seen as the most likely short-term outlook for Solana.
However, the negative news backdrop and Solana Foundation’s continued inactivity could affect the price of the token. A close below $20.60 would cancel the bullish outlook and likely lead to a drop below the downward resistance line at $17.50.
Earlier, we reported that $1.8 billion worth of BTC options expired on February 24.
Cryptotraders lost more than $250,000,000 in liquidations after Fed rate hike
Cryptotraders had a tough day: almost 68,000 positions were liquidated on exchanges in the last 24 hours, and the total volume of liquidations exceeded $257,000,000. All this happened against the news of the US Federal Reserve’s rate hike and another Securities and Exchange Commission regulatory action against cryptocurrencies.
Cryptotraders lost $132,000,000 in BTC
Bitcoin, Ethereum, and Ripple were the leaders in the number of forcibly closed positions. BTC liquidations totaled almost $132,000,000; Ethereum traders lost $51,000,000. XRP positions accounted for about $8,000,000 of liquidations. Bitmex exchange executed the largest order of $7.39,000,000.
Cryptocurrency market capitalization has declined 2% in the last 24 hours, but is still above the $1 trillion mark.
The weekly CoinShares report also recorded a massive outflow of funds for six consecutive weeks. During that period, nearly $500,000,000 was withdrawn from cryptocurrency platforms, with $113,000,000 coming from bitcoin. Analysts at the company believe the outflow is due to liquidity needs during the banking crisis rather than a negative outlook. The company mentions that a similar scenario was seen in March 2020 amid a COVID-19-induced panic.
Regulators continue to hunt the cryptobusiness
Another reason for the increased volatility in the market has been harsh action from U.S. regulators. Last night it became known that the U.S. Securities and Exchange Commission sued cryptomagnate Justin Sun, accusing him of fraud and market manipulation.
The SEC also issued a notice of wrongdoing against Coinbase, the largest U.S. cryptocurrency exchange. The securities regulator sued Coinbase Global Inc, for some of the products it offers.
We previously reported that Bitcoin (BTC) tests $28,000, but onchain metrics urge caution.
Binance was caught circumventing KYC to register Chinese clients
Employees of the cryptocurrency exchange Binance help clients from China to bypass compliance and verification. CNBC writes about it, citing hundreds of corporate emails from exchange employees on Discord and Telegram. It is reported that Binance has helped over 200,000 users register, bypassing its own security system. One case describes correspondence between a user from China and a Binance employee.
The employee under the pseudonym yaya.z suggested the user from China turn on a VPN, register as a Taiwanese resident and then return the location to China. Binance employees also advise customers not to use VPN services from the U.S., Hong Kong and Singapore, because the exchange does not provide services in those regions, writes CNBC. At the same time, Binance freely processes applications from U.S. email providers like Gmail or Outlook for registration.
The exchange even offers specialized mobile applications for customers from China. A CNBC reporter could download a special mobile application from Binance via email. At the same time, no VPN was needed to download the app, as the download was conducted through the domain of binance[.]com. It is also alleged that the exchange still verifies users with Chinese phone numbers.
An exchange spokesperson denied the existence of a special Chinese version of the mobile application. The exchange also added that it has improved the system to identify users from banned regions. CNBC notes that after providing evidence, Binance removed employee messages from corporate chats to circumvent KYC.
We previously reported that the Ethereum (ETH) price crossed the $1,800 mark, opening the way to $2,000.
Why cryptoanalysts expect bitcoin to fall
The market remains in a bearish trend and bitcoin (BTC) will resume its fall and test $16,000. There are two reasons:
The first statement can be confirmed or disproved by a technical analysis of the cryptocurrency market, but there is not enough additional information for the second.
The market capitalization of altcoins (ALTCAP) does hold nearly $605 billion of resistance. Although ALTCAP has risen above it several times, it didn’t develop above this area.
However, the daily RSI has broken through the bearish divergence trendline (green line). Such a breakout often precedes significant reversals into a bullish trendline. As a result, ALTCAP will move higher towards the $680B resistance area. If not, ALTCAP could fall back to the $518B support area.
There are also those who argue that bitcoin will test the $10000-$11000 area because there is a CME price gap that needs to be filled. The gap refers to the difference between the closing price of bitcoin futures on the Chicago Mercantile Exchange (CME) on Friday and the opening price on the following Monday.
We previously reported that Hong Kong has allocated another $50,000,000 to the crypto industry.
Forex8 months ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
Forex4 months ago
Unbiased review of Pocket Option broker
World5 months ago
Why are modern video games an art form?
Forex8 months ago
How is the Australian dollar doing today?
Cryptocurrency8 months ago
What happened in the crypto market – current events today
Stock Markets3 months ago
Amazon layoffs news: company announces record layoffs
Forex7 months ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
Stock Markets8 months ago
Morgan Stanley: bear market rally to continue