Today, the Largest Alternative Cryptocurrency Narrowly Avoided a Catastrophe

cryptonews.ruPublished on 2026-08-12Last updated on 2026-08-12

Abstract

Today, the Solana network narrowly avoided a catastrophic halt due to a routing error that simultaneously took many validators offline. At its peak, 28.83% of staked SOL became non-transactional, bringing the network within 86% of the critical 33.34% threshold where block finalization would have stopped. While block production continued and a full network outage was averted, the incident highlighted the risk of a "finality halt." The problem originated from a misconfigured default route from a Teraswitch data center in Miami, which was propagated to centers in Europe and Asia-Pacific. This caused traffic loss in 12 locations, including London, Amsterdam, and Singapore. The issue was identified within 10 minutes, but some validators took about 33 minutes to recover fully. Analysis by Marinade Finance revealed significant infrastructure concentration risk. Approximately 118.89 million SOL (over a quarter of the total stake) is hosted within a single autonomous system (AS20326), and about 94% of it went offline during the event. Furthermore, stakes worth around 14.1 million SOL on other platforms were also affected, raising concerns that provider-based concentration metrics may underestimate true correlation risks. The incident resulted in roughly 333 SOL in missed staking rewards for the 90 impacted validators.

Today, the Solana network came close to halting transaction processing due to a routing error that simultaneously disabled multiple validators.

According to data provided by Marinade Finance, at the peak of the event, 28.83% of staked $SOL entered a 'non-transactional' state. The critical threshold for finalizing transactions on the Solana network is 33.34%. Thus, the network reached a point where it could have incurred losses related to the loss of 'finality' if approximately 19.9 million more $SOL had been deactivated.

According to Marinade Finance's post-incident analysis, the network came within about 86% of the threshold at which block finalization would have ceased. Block production continued during the event, which affected around 90 validators, and Solana's operation did not come to a complete halt. However, if the active staking level had fallen below 66.67%, the finalization of new blocks, i.e., their irreversibility, would have stopped.

Therefore, this event is significant not so much as a classic full network outage of Solana, but rather as the network approaching a critical state known as a 'finality halt.' Marinade estimated that the total staking rewards missed by the 90 affected validators amounted to approximately 333 $SOL. For some operators, the outage lasted about 33 minutes.

In Solana, the Problem Was Caused by a Routing Error in a Teraswitch Switch.

The incident was caused by a routing issue within Teraswitch infrastructure. According to the technical analysis conducted, a default route originating from the company's data center in Miami was announced without the necessary specifications. A route reflector in Amsterdam then propagated this route to other data centers in Europe and the Asia-Pacific region.

As a result, some edge routers preferred the erroneous route as a local default route, while the core network considered this route invalid. Loss of valid traffic routes was reported at a total of 12 locations, including London, Amsterdam, Dublin, Frankfurt, Singapore, and Tokyo. North American infrastructure was largely unaffected.

The problem was identified after about 10 minutes, but it took some validators around 33 minutes to return to normal operation.

Marinade's analysis also raised concerns about the risk of congestion in Solana's validation infrastructure.

According to the data provided, autonomous system AS20326 hosts approximately 118.89 million $SOL. This amount constitutes over a quarter of Solana's total staked amount, with about 94 percent of these stakes reportedly offline simultaneously during the incident.

The repercussions of the issue did not end there. Marinade noted that staked amounts totaling around 14.1 million $SOL on other platforms such as Latitude.sh, Limestone, Butterfly Research, and Allnodes were also unavailable at the same time.

The company stated that based on the available data, it is impossible to determine whether the simultaneous impact on these validators was due to reliance on shared infrastructure or if it was a coincidence. However, the incident demonstrated that concentration measurements based solely on hosting provider data may underestimate the true correlation risk.

*This is not investment advice.

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Related Questions

QWhat was the critical threshold for finality in the Solana network, and how close did it come to reaching that point during the incident?

AThe critical threshold for transaction finality in the Solana network is 33.34% of staked SOL becoming inactive. During the incident, the network reached approximately 86% of this threshold, meaning it came very close to losing finality.

QWhat was the root cause of the Solana network's routing incident, and which regions were most affected?

AThe root cause was a routing configuration error in Teraswitch infrastructure. An improperly specified default route from a Miami data center was propagated by a route reflector in Amsterdam, affecting traffic in 12 locations including London, Amsterdam, Dublin, Frankfurt, Singapore, and Tokyo. North American infrastructure was largely unaffected.

QHow much staking rewards were lost by the 90 affected validators during the outage, and how long did it take some operators to resume normal operations?

AThe 90 affected validators collectively lost approximately 333 SOL in staking rewards. For some operators, the downtime lasted about 33 minutes before they could return to normal operation.

QWhat concern did the Marinade Finance analysis raise regarding the concentration of Solana's staking infrastructure?

AThe analysis raised concerns that measurement based solely on hosting provider data may underestimate true correlation risk. It highlighted that Autonomous System AS20326 hosts roughly 118.89 million SOL (over a quarter of the total stake), and about 94% of that stake was offline simultaneously during the incident, showing a high concentration risk.

QDid the Solana network experience a complete halt during this incident? If not, what continued to function?

ANo, the Solana network did not experience a complete halt. Block production continued during the event. The network approached but did not cross the threshold where finalization (the irreversibility of new blocks) would have stopped.

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