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Solana nears transaction halt as 29% of staked SOL goes offline after routing failure

Protocol Fundamentals
12 Aug 2026
Crypto Briefing
View Source
Bearish
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Solana experienced a routing failure causing about 28.83% of staked SOL to go offline, dangerously close to the 33.34% threshold that would stop transaction finality. This incident exposed the network's vulnerability, as just a few more offline validators could have frozen transaction confirmations. Solana's upcoming Alpenglow upgrade aims to improve safety by pausing block production rather than risking inconsistent transactions. The event raises debate over Solana's lack of slashing penalties, which may reduce incentives for validators to prevent downtime, impacting staking rewards for token holders.

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