Last night, Solana’s network validators experienced a severe outage—28.83% of staked SOL went offline simultaneously, nearly causing the world’s second-largest PoS blockchain to shut down permanently. During the outage, 333 SOL in rewards were permanently lost, worth approximately $25,000 at current prices—but the real horror was the network’s near descent into a death spiral. More than a quarter of Solana’s total staked supply went offline during the failure window; just 5% more and the network would have triggered its shutdown condition. While Ethereum boasts over 4,000 geographically dispersed nodes, Solana’s centralized node structure was laid bare. Following the incident, SOL plunged 2.6% overnight, dropping from $77.33 to $75.62, putting all Solana DeFi protocols, meme coin ecosystems, and Jupiter trades at risk of suspension. BTC also slipped below $64,000, hitting a low of $63,310; ETH broke below $1,900. Solana’s near-shutdown became today’s biggest crypto market negative catalyst—when even the leading PoS chain can nearly collapse, confidence in the entire altcoin ecosystem is eroding. With the SEC’s Regulation Crypto vote (August 14) just days away, the Solana incident may accelerate the SEC’s rollout of a “PoS chain staking compliance framework”—regulators are expected to impose much stricter requirements on node decentralization and failover mechanisms. Risk Disclaimer: The views, conclusions, and recommendations in this content are for informational purposes only and do not constitute investment advice. The market carries risk; invest with caution.
Solana Network Faces Near-Shutdown as 28.83% of Staked SOL Goes Offline
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Summary
Solana’s network upgrade failed to prevent a major outage, as 28.83% of staked SOL went offline, nearly halting the second-largest PoS chain. During the incident, 333 SOL in rewards were lost, and the network came within 5% of a full shutdown. The event triggered cryptocurrency price news, with SOL dropping 2.6% to $75.62. The incident has raised concerns about node centralization and could influence future regulatory discussions on staking compliance.
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