Solana’s native cryptocurrency SOL made headlines last week for delivering an impressive parabolic performance that pushed it to a new high at $216. However, the recent market crash on September 9 triggered an equally strong retracement for the Sol token but its downward spiral extended during yesterday’s trading session due to some technical problems.

Solana’s development team revealed through the project’s official Twitter account that the blockchain was unable to validate transactions due to resource exhaustion. The team also noted that third-party validators that validate transactions on the Solana blockchain executed a coordinated attempt to restart the network and they were successful.

Unfortunately, the Solana blockchain outage triggered some panic selling that extended SOL’s downward trajectory a bit further. SOL dropped as low as $142 during yesterday’s trading session, which is quite a big drop from its recent all-time high of $216. However, it has recovered some of its losses and is currently trading at $157.

Source: Binance

Unfortunately, Solana’s outage which lasted for about 17 hours between Tuesday and Wednesday also meant that the decentralized crypto projects hosted on the Solana blockchain were also affected. Fortunately, the outage did not lead to the loss of digital currencies on the network. However, it is possible that some users on DeFi platforms running on Solana may have lost some value.

The outage that plagued Solana’s network yesterday is a nightmare for blockchains. While assets may not have been lost, such an event is enough to dent the protocol’s reputation and scare potential projects away. It might even force some of the network’s existing projects to migrate to a different blockchain network. It is currently too early to tell whether the outage will have an impact on how existing and potential clients view the network.

It is the first time that Solana is experiencing such a problem and while it led to some panic selling, it is not necessarily a problem that warrants a major reaction such as migrating to a different blockchain. If anything, Solana’s past performance reflects just how good it is, and technical problems in complex systems are bound to occur at some point.

Other blockchains face unique challenges that may affect their performance and Solana’s recent woes are just a technical challenge that it managed to solve. Meanwhile, the extended dip in the price of SOL means it is currently available at a discounted price. It is currently oversold at its current price tag and the crash also paved way for a retracement that is often expected after a major price rally. It is also at an ideal time when the market is showing signs of recovery, which means SOL will likely experience some upside in the next few days as the FUD blows over.

Solana has been experiencing robust network growth as more decentralized projects launch on its blockchain. The robust demand will likely continue and this means Solana might recover back to its previous all-time highs and will likely continue to set new ATHs in the future.