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- Coinbase reaffirmed its support for Solana, viewing network challenges as signs of growth rather than a rift.
- Despite recent network issues, Solana’s market resilience and Coinbase’s backing highlight its long-term potential.
Coinbase’s Chief Legal Officer recently addressed rumors regarding the company’s relationship with the Solana (SOL) network including the new allegations, specifically in light of recent network difficulties. He emphasized that the Solana ecosystem is “100% blessed” to have Coinbase’s continued support.
Following a CNF update, it was highlighted that Coinbase is under scrutiny over delays associated with Solana, as users are pushing for proof of reserves to ensure the platform’s operational transparency. This development indicates that the exchange has played a significant role in backing the network, even during the recent challenges.
Solana Faces Network Struggles Amid Traffic Surge
The controversy surrounding Solana escalated when the network experienced significant transaction delays, particularly following a surge in traffic driven by the popularity of meme coins like Trump [TRUMP] and Melania Meme [MELANIA].
This influx of transactions overloaded the network, causing issues for U.S.-based traders using Coinbase, resulting in delayed and canceled SOL transactions. This triggered widespread user complaints, leading to growing frustrations among traders reliant on the network for their operations.
Coinbase CEO Addresses User Concerns
In response to the issues, Coinbase CEO Brian Armstrong took to X (formerly Twitter) to reassure users. He acknowledged the delays and cancellations of Solana transactions but assured customers that the situation had been addressed.
We have the Solana backlog triaged, and transactions should generate quickly again. If your transaction got canceled you can retry it now – apologies for the trouble.
It’s clear we need to step up our game on Solana, scale our infrastructure, and provide native support for…
— Brian Armstrong (@brian_armstrong) January 22, 2025
Armstrong referred to the influx of activity as a “high-quality problem,” noting that while the delays were inconvenient, they were also a sign of unexpected growth and robust activity within the Solana ecosystem. He encouraged affected users to “retry their sends” as the platform worked on resolving the issues.
Solana’s Market Resilience and Future Outlook
In addition, investor Fred Krueger also added fuel to the optimism, predicting that Solana may eventually surpass Ethereum (ETH). With continued support from Coinbase and a growing network, Solana’s future outlook remains promising despite the recent hurdles.
At the time of writing, Solana (SOL) is trading at $227.90, with a decrease of 12.09% in the past day and 13.01% in the past week. Despite the network challenges, Solana’s market performance has shown resilience. This price stability signals investor confidence in the token, even amid technical setbacks.
