Ripple’s digital token XRP has displaced Solana (SOL) to become the 7th largest cryptocurrency by market capitalization.
Solana blockchain suffered another unfavorable incident that clogged the network and hindered decentralized finance (DeFi) users from adjusting their collateralized positions.
The latest Solana network issue came amid the ruthless crypto market-wide rout. The outage subsequently allowed XRP to displace SOL from the 7th position in the market.
The Solana network went offline last weekend, starting from Friday through Saturday. The network was overwhelmed by a flood of incoming transactions.
Solana Founder Anatoly Yakovenko stated that “bots were sending duplicate TXs” hence causing the network to slow and transactions to fail, much to the chagrin of DeFi users.
The massive retracement that started on Thursday has only worsened as days go by. Solana (SOL) plummeted from $144 on early Thursday to a devastating low of $91.76 at press time.
Consequently, DeFi users who had borrowed assets from lending protocols such as Soland realized that they had to top up on their loan collateral to avoid liquidations. Unfortunately, they were unable to top up their collateral due to the insane network congestion.
This means most users were liquidated after the network was overwhelmed by transactions generated by bots and they were unable to repay their loans.
Solana is currently the biggest loser among the top 20 cryptocurrencies, losing a further 20.01% of its value over the last 24 hours. SOL is now down more than 68.3% from its November peak of $259.96.
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Most notably, XRP overtook SOL in market capitalization size. With a market value of $27.32 billion, XRP is currently the seventh-largest cryptocurrency, while SOL is currently at $27.14 billion.
