Solana Introduces Version 1.17.31 of Initial Crypto Update to Address Blockchain Congestion
In response to the escalating reports of transaction failures within the Solana blockchain community, developers have unveiled version 1.17.31 of a corrective update today. This release marks the inception of a comprehensive series of code enhancements aimed at eradicating the burden of excessive computational loads on network nodes, ultimately enhancing the overall user experience.
The Solana Foundation has issued a “recommendation” to mainnet validators to promptly update their software:
The MainnetBeta validators are now encouraged to deploy the v1.17.31 release for general utilization. This update incorporates improvements designed to mitigate the ongoing congestion issues on the Solana Network.
— Solana Status (@SolanaStatus) April 15, 2024
This latest update, previously trialed in the testnet environment with contributions from the Anza collective, notably the Agave client manager, tackles congestion challenges through the implementation of the SWQOS transaction priority framework.
According to Anza’s developer relations manager, Anza Rex St John, this prioritization scheme benefits transactions originating from validators engaged in staking that are classified as “good.” This approach aims to deter subpar validators from inundating the network with superfluous transactions.
In a recent post on X, St John elaborated on the significance of this approach:
“During periods of high network traffic, it is essential to prioritize reliable connections. The concept revolves around incentivizing staking validators to utilize connections for sending meaningful transactions.”
This “fix” instills a sense of optimism within the Solana community following the tumultuous surge in failed transactions triggered by the memecoin frenzy.
During March, amidst an eightfold surge in on-chain volumes from the preceding month, totaling \(500 million to \)4 billion, approximately 70% of transactions failed to process successfully.
The surge in trading bot utilization for memecoin exchanges further exacerbated the technical challenges. Recent data indicates a decline in the rate of “Non-Vote Transactions” to around 57%, a trend that could witness a significant drop with the seamless completion of the crypto update.
The terminology surrounding “failed” transactions on the Solana blockchain is highlighted in this context as inherently imprecise. User X, known as “Dave Kayac,” suggested replacing “failed” with “rejected” to better reflect the scenario where transactions are communicated to validators but ultimately declined due to external factors, such as slippage or priority issues.
SOL Price Analysis: Recovery Post Saturday’s Market Plunge
While Solana’s development team endeavors to tackle network congestion through mainnet updates, the SOL coin exhibits signs of resurgence following a notable setback over the weekend.
On Saturday, April 13th, prices witnessed a 9.59% decline, extending the previous day’s sell-off that breached the crucial support level of EMA 50 daily.
However, SOL has managed to reclaim its position above $150 between yesterday and today, reigniting bullish sentiments for a potential uptrend continuation.
Amidst heightened trading volumes and the RSI14 touching the 30 zone, signaling a possible end to the retracement phase, the immediate focus lies on reclaiming the \(160 level, consolidating above it, and targeting levels beyond \)180.
The recent turbulent market conditions have led to substantial liquidations in derivative markets, with approximately $77 million in long liquidations recorded between April 12 and 13, compared to short liquidations totaling around $20 million between April 13 and 14.
Moreover, the open interest in SOL has notably decreased from \(3.4 billion at the start of the month to the current \)2 billion. The funding rate has also witnessed a significant reduction from 0.08% to 0.003%, poised to turn negative if the selling pressure persists.