Crypto analytics firm Santiment says it has a bullish forecast for Ethereum (ETH) competitor Solana (SOL), despite the smart contract platform experiencing a major outage earlier this week.
On Tuesday, the Solana mainnet experienced an issue causes the network will be offline for five hours, according to Solana Status, a SOL tracker and explorer.
This problem has now been resolved.
According to Binance, this led to the creation of crypto exchange UpBit suspend deposits and withdrawals of SOL and SOL-based altcoins, such as GMT (GMT), Raydium (RAY) and Access Protocol (ACS).
The downtime caused SOL’s price to fall, falling to a seven-day low of $93.10 before recovering. SOL is trading at $103.03 at the time of writing, up 1.95% in the last 24 hours.
According to Santiment, Solana is amid the few crypto assets that deliver higher returns than Bitcoin (BTC), the leading digital asset by market capitalization.
“Solana is one of the few altcoins to outperform Bitcoin this week, returning above $102. In the last 36 hours, SOL/BTC is +4.5%.”
Santiment says Solana development activity – a metric used to indicate whether developers think a crypto project will be successful or roll out new features – fell during the outage.
However, the analytics platform says the fear, uncertainty and doubt (FUD) surrounding Solana due to the issues turned out to be a boon for the smart contract platform.
“The outage that affected traders on Monday ultimately became a local low, with the FUD fueling this price recovery.”
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Generated image: Midjourney