Solana Price Rebounds as Founder Dispels Misconceptions on Network Capacity
The post Solana Price Rebounds as Founder Dispels Misconceptions on Network Capacity appeared on BitcoinEthereumNews.com.
Solana price surged 2% to $145 amid a less volatile weekend. The bullish narrative was uplifted by Bitcoin’s attempts to regain the $ 60,000 psychological level. However, the SOL price developing a bullish continuation pattern flag could bolster a prolonged recovery by the end of August. Solana Price Holds Steady as Yakovenko Clarifies Fee Dynamics Anatoly Yakovenko, co-founder of Solana, recently addressed the floating misconception about the SOL Network’s capacity and transaction. In his tweet, Yakovenko clarified that Solana’s blocks are not full, which some attributed to past network congestion. Anatoly highlighted that amid the growing demand, people are willing to pay high fees to access specific states on the blockchain. This behavior is competitive as users prioritize speed and exclusivity, often for financial gain. Therefore, adding more capacity, whether through Layer 2 (L2) solutions or Zero-Knowledge Proofs (ZKPs), will not necessarily lower fees for those users seeking priority. Amid the tweet, the Solana price showcased sustainability above the $140 level. Yakovenko also argues that current fee dynamics are more intricately tied to user incentives than simple support and demand regarding block space. He added that profit potential typically drives the desire for an L2 scaling solution. L2 providers aim to capitalize on offering access to hotspots, areas of the network where demand for transactions is particularly high. Wrong assumption! Solana blocks aren’t full. People are willing to pay high fees to be first to access specific state. Adding additional capacity, with L2s or ZKPs, will not result in lower fees for those users. People want to launch L2s so they can make a profit providing… https://t.co/3Ex8FCcK2I pic.twitter.com/VsThgpcK87 — toly 🇺🇸 | compressed (@aeyakovenko) August 17, 2024 While this competitive landscape may result in more options for users, it does not inherently reduce costs on the main chain. SOL Price…
Filed under: News - @ August 18, 2024 4:13 pm