Andre Cronje, one of the co-founders of Fantom, shared his support for the Solana blockchain in response to criticisms over network congestion. He acknowledged that Solana is facing challenges due to its rapid growth, emphasizing the need to address performance bottlenecks.
Cronje stated that there has been a surge in criticism against SOL, attributing it to the increasing block space. However, he clarified that this is an engineering issue and not a failure of consensus or any key component.
Phantom identified that the Solana network is grappling with congestion, leading to potential transaction failures or delays. The primary concerns are related to QUIC implementation and the behavior of the Agave validator client under high request loads.
Anza, a development firm specializing in Solana, shared updates on addressing current network congestion through their validator client implementation. The team anticipates releasing solutions to these challenges in the coming week.
In response to these difficulties, Solana’s price dipped nearly 10% over the past week. Despite this, the cryptocurrency has shown signs of recovery, with a 3% increase in the last 24 hours. At present, SOL is priced at an average of $176.89, with a trading volume surge of 74%, totaling $8.5 billion. Nevertheless, its market cap remains at $78.7 billion.
Pantera’s Profitable Venture
Pantera Capital’s Liquid Token Fund experienced significant growth in the first quarter, with a 66% increase attributed to cryptocurrencies like Solana. The fund reduced its exposure to Bitcoin and Ethereum-related tokens due to challenges such as uncertainties around the approval of spot Ether exchange-traded funds (ETFs) in the US.
Portfolio manager Cosmo Jiang noted that the fund has reduced its Bitcoin holdings by more than half in the past three months, reflecting a strategic shift in investment allocations.
As a well-established asset manager in the crypto industry since 2013, Pantera Capital offers a range of investment products. Recent reports indicated that the firm was raising funds for a dedicated fund aimed at acquiring up to $250 million worth of Solana tokens from the FTX estate.
