Andre Cronje, co founder of Fantom came ahead to voice his support for the Solana blockchain amidst criticisms about congestion on the network. However, he described Solana as a victim of its own success, highlighting the need to optimize performance bottlenecks.
Solana struggles exposed
In a post, Andre Cronje wrote that he is seeing a lot of “I told you so’s” against SOL frequently. He mentioned that this is because of an increasing amount of blocksapce. However, this is just an engineering hurdle and not a fault of consensus or any critical component.
It is important to note that Phantom showed the Solana network is battling with congestion. It added that users’ transactions may fail or be delayed. He highlighted that the core issues are related to a QUIC implementation. This also includes the behavior of the Agave validator client on Solana when asked to process a large number of requests.
Anza, a Solana focused dev shop dropped timelines and what to expect ahead. It stated that they are addressing the current network congestion on the network in their validator client implementation.
The developer stated that major progress has been made in order to overcome the ongoing challenges. However, it expects to begin releasing fixes next week.
Dealing with this issue, Solana price dropped by almost 10% in the last 7 days. It seems like the crypto is trying to make a recovery here as it has managed to jump by 3% in the last 24 hours. SOL is trading at an average price of $176.89, at the press time. Its 24 hour trading volume is up by 74% to stand at $8.5 billion. However, its market cap stands at $78.7 billion.
Pantera made good money
Meanwhile, Pantera Capital’s Liquid Token Fund saw high returns in the first quarter, with a 66% increase driven by cryptos like Solana. The fund reduced its exposure to Bitcoin and Ethereum linked tokens amid headwinds such as uncertainty surrounding the approval of spot Ether exchange-traded funds (ETF) in the US.
Portfolio manager Cosmo Jiang stated that the fund decreased its Bitcoin holdings by more than half over the past three months, reflecting a shift in investment strategy.
Pantera Capital is a veteran asset manager in the crypto space. It has been active since 2013 and offers various investment products. In March, it was reported that the company was raising funds for a fund dedicated to purchasing up to $250 million worth of Solana tokens from the FTX estate.
