Solana-82.Solana Outages

    -- Q82. Solana experienced another outage on 6/1 where validators were forced to restart the network. -- The network experienced a similar problem back on 5/1. -- After the restart happens during these outages, how do users on the network generally respond? -- Does the price of SOL drop because users lose confidence in the network? -- Is there more swapping behavior and more stablecoin activity? -- What protocols seem to have more activity after these types of events that on the average day in the Solana ecosystem? -- Is there more fear from defi Solana users than NFT enjoyers?

    Methodology

    • Since the price of SOL is not directly available, we find the price from swaps tables looking at the SOL swapped into USDT, giving the average price for the day.
    • Also there is some issue with price of May 25, therefore we only consider SOL prices below 500, since SOL has never gone above 300.

    Does the price of SOL drop because users lose confidence in the network?

    • Seems like the outage doesn't seem to affect the SOL price.
    • In the two instances of recent outages, the price of the token isn't affected.
    • During May 2022, it stayed around 87, whereas in June 2022 it did fall from 41 to 35, however it is in line with the general market trend.
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    Is there more swapping behavior and more stablecoin activity?

    • Look at the stablecoin swapping activity there doesn't seems to be any affect of the network outages.
    • There was a huge spike on 11-12 May, 2022, that was due to the Terra Implosion.
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    Is there more fear from defi Solana users than NFT enjoyers?

    • Yes, there seems to be a clear fear from NFT holders where we see a sudden spike in NFT sales right after the outage resumes.
    • The pattern was seen both in May 2022 and June 2022.
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    What protocols seem to have more activity after these types of events that on the average day in the Solana ecosystem?

    • Looking at the swap activity the most activity was seen in jupiter aggregator v2, but that is not related to the outage, it generally sees the highest amount of swap volume.