Solana’s Bad Year And The Rise Of Cardano And Polygon
When it comes to dealing with finances, nothing is more important than having good security. Recent events rocked the reputation of Solana in terms of security allowing Cardano and Polygon to overtake in this particular aspect.
The Wormhole Hack
In February 2022, the Wormhole Bridge of the Solana network was hacked by an unknown team of cybercriminals who managed to get away with over $320 million in their pockets. They stole wrapped ETH and quickly dispersed them across a myriad of wallets making it close to impossible to recover funds. The hack revealed critical vulnerabilities that were dealt with. However, the damage was done.
Total losses are massive
Solana lost more in the first Q of 2022 creating a strong argument for distrusting its security measures and development processes that result in the deployment of vulnerable solutions. The Ethereum network was exploited exactly 18 times, but Solana still managed to be close behind with over $397 million lost in several hacking attacks.
For example, the DeFi project Crema Finance which is deployed on the Solana network fell victim to a massive attack losing $8 million. Thankfully, the hacker turned out to be a good guy and returned the stolen coins for a small compensation.
Several such security failures made Solana’s reputation fall significantly. Industry experts pointed out that a large variety of networks are more reliable and safe. Cardano and Polygon were mentioned by @altcoindalyio on Twitter as better options in terms of security.
The bad year
Solana is a perfect example of a DeFi project that has everything stacked against it. A very poor first quarter of 2022, the whale scandal that borrowed heavily by using SOL as collateral, and more problems with security and reliability made it a scapegoat for those who criticize crypto projects in general and DeFI platforms in particular.
Whether Solana can withstand this storm and survive is an open question. For now, it seems that the platform still has enough users and loyal supporters, but several more hacks will drive the reputation of the platform into the ground.
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