Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
A Major Altcoin Narrowly Avoided Disaster Today

A Major Altcoin Narrowly Avoided Disaster Today

BitcoinSistemiBitcoinSistemi2026/08/12 18:48
By:BitcoinSistemi

The Solana network came remarkably close to a transaction finality halt today after a routing error took numerous validators offline simultaneously.

According to data shared by Marinade Finance, at the peak of the event, 28.83% of staked SOL entered a “non-transactional” state. The critical threshold for transaction finality on Solana is 33.34%. Thus, the network reached a point where it could have experienced a loss of “finality” if approximately 19.9 million more SOL had been deactivated.

According to Marinade Finance’s post-event analysis, the network came within approximately 86% of the threshold where finality would stop. Block production continued during the event, which affected around 90 validators, and Solana did not completely halt. However, if the active staking rate had dropped below 66.67%, the finalization of new blocks, meaning they would have become irreversible, would have stopped.

Therefore, the event is significant not so much as a classic shutdown of the entire Solana network, but rather as the network approaching a critical state known as a “finality halt.” Marinade calculated that the total staking rewards missed by the 90 affected validators amounted to approximately 333 SOL. The outage lasted about 33 minutes for some operators.

The Source of the Problem in Solana Was a Routing Error in Teraswitch

The incident was attributed to a network routing problem in the Teraswitch infrastructure. According to the shared technical analysis, a default route originating from the company’s Miami facility was announced without the necessary specifications. A route reflector in Amsterdam then distributed this route to other facilities in Europe and the Asia-Pacific regions.

As a result, some edge routers preferred the erroneous route as the local default route, while the underlying core network considered the route invalid. Valid traffic routing paths were reported lost in a total of 12 locations, including London, Amsterdam, Dublin, Frankfurt, Singapore, and Tokyo. North American infrastructure was largely unaffected.

The problem was identified within approximately 10 minutes, but it took about 33 minutes for some validators to return to full normal operation.

Marinade’s analysis also raised concerns about the risk of overcrowding in Solana’s verification infrastructure.

According to shared data, there are approximately 118.89 million staked SOL on autonomous system number AS20326. This amount represents more than a quarter of the total stake in Solana, while it was reported that approximately 94 percent of this stake was simultaneously offline during the incident.

The effects of the problem were not limited to this. Marinade noted that at the same time, approximately 14.1 million SOL worth of stakes running on other platforms such as Latitude.sh, Limestone, Butterfly Research, and Allnodes were also offline.

The company stated that it was not possible to determine from the available data whether the simultaneous impact on these validators stemmed from a shared infrastructure dependency or was coincidental. However, the incident indicated that concentration measurements based solely on the hosting provider might underestimate the true correlation risk.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

Fear is the biggest short! Morgan Stanley calls for bottom-fishing in semiconductors: land and electricity shortages are not a problem, approved projects can't meet demand

Morgan Stanley believes that the recent sell-off in the semiconductor sector has been excessive, and that market panic rather than fundamentals is the biggest risk. Driven by demand for AI infrastructure, downstream orders continue to accelerate, with semiconductor supply remaining the core bottleneck. LPS constraints actually make growth more stable. The sector may fluctuate within a range in the short term and is currently near the bottom; prospects for the computing power and storage subsectors are favorable.

华尔街见闻•2026/11/11 05:57
Fear is the biggest short! Morgan Stanley calls for bottom-fishing in semiconductors: land and electricity shortages are not a problem, approved projects can't meet demand

Hashrate orders are booming, why is "AI trading" falling out of favor? JPMorgan reveals the time lag between AI investment and productivity realization

Joseph Lupton from the JP Morgan Global Economic Research Team pointed out in a research report on November 10 that recent improvements in labor productivity have been driven more by capital deepening and increased intensity of factor utilization. The broad efficiency gains from AI, resulting from process reconstruction, data integration, and organizational adjustments, will still take time to materialize. This means orders for chips, servers, and electrical equipment may grow first, but continuous investment returns for computing power operators and end users may not arrive at the same pace.

智通财经•2026/11/11 05:47

AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!

Goldman Sachs believes that the AI investment cycle is currently in the "trough of disillusionment," but this is not the first time. The core contradiction lies in the fact that the business models of new cloud computing providers are highly dependent on end-user returns from AI spending, while currently "there are basically zero companies that can attribute profits to AI." Social Capital founder Palihapitiya has clearly defined an 18-month key window, during which the market will decide which AI business models are sustainable and which are not.

华尔街见闻•2026/11/11 05:11
AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!