Economic network

Has Solana suffered another network failure?


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Another Raydium AcceleRaytor IDO caused major congestion on Solana yesterday. Although transaction confirmations have slowed, it appears the network has not suffered an outage this time around.

Slow Solana transactions

Solana continues to have difficulty processing transactions.

The high-speed blockchain saw its transaction speed per second drop by around 50% yesterday as users rushed to participate in Raydium’s latest AcceleRaytor initial DEX offering (IDO). Although many users were frustrated that their transactions took longer to process, the network was not taken offline as it had in a previous IDO.

Solana’s transactions per second during the IDO. (Source: explorer.solana.com Going through @ 0xrooter)

Projects use the initial DEX offerings to launch their tokens and sell them to the public through a decentralized exchange, also known as DEX. Distribution methods vary, but for many an IDO is a chance to buy a project’s tokens before it increases in value.

Yesterday’s IDO was for Realy, a Metaverse project on Solana aimed at combining social media, e-commerce, gaming and commerce. Like many other Raydium IDOs before him, allocations for the Realy offering were in high demand. In order to gain an edge during the IDO, many tech-savvy investors have deployed bots to get their trades processed faster.

This practice of using bots on Raydium IDOs has severely affected the Solana network in the past. In September, robots interacting with Raydium’s IDO for the Grape protocol blocked the network with transactions, causing it to shut down. The network was idle for around 18 hours as Solana developers and node operators struggled to bring the network back online.

It is possible that fixes implemented since the Grape Protocol IDO helped Solana stay online on this occasion, despite the high network traffic caused by the bots. Crypto Briefing has reached out to Solana Labs co-founder Anatoly Yakovenko for comment, but has not received a response at time of publication.

Disclosure: At the time of writing this feature, the author owned SOL and several other cryptocurrencies.

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