The price of AVAX has scored high in the midst of the Avalanche network outage

The Layer 1 blockchain Avalanche suffered a major crash on Friday that took its network offline.

This disruption temporarily halted blockchain production, raising concerns in the crypto community, with some comparing it to Solana.

The cause of the avalanche

Ava Labs founder Kevin Seknicki first linked the problem to a “newly designed wave.” But he later clarified that the problem was code-related, not performance-related. Seknicki said the bug caused nodes to increase CPU usage due to excessive chatter.

“Clarification on this: The issue appears to be a memory pool management bug related to gossip, which is just a code-related bug, and not a performance management issue. Scripts seem to affect edge handling, but scripts do not affect performance,” Seknicki said.

He also explained that it was “buggy logic” that caused every node to be filled with unnecessary marketing gibberish. But the team quickly fixed the problems by updating the software to disable the problematic logic introduced in v1.10.18, which caused validators to exchange excessive gossip.

Following the issues, several members of the crypto community compared Avalanche's outage to Solana's earlier incidents. Solana has a habit of being late.

Still, this outage represents the first major disruption to the Avalanche network since its launch in September 2020. One analyst explained that Solana's crashes are often due to its inability to handle high loads, while Avalanche's latest issue was caused by an error during an upgrade.

“Solana is conflicted because he can't handle the burden. “Avalanche is broken due to a bug introduced by an update, but otherwise it can handle loads (so there are no problems with Avalanche. This is a problem with the update system – every update can introduce bugs,” the analyst explained.

AVAX suffers from a strong correction

This issue comes at a critical time for Avalanche's AVAX token, which is experiencing a continuous decline in its market value. During the week, higher selling pressure particularly affected the price path.

On Thursday alone, Token.Unlocks data shows that nearly $365 million worth of unlocked tokens have moved out of the outfit and into circulation. The combination of this token launch and the system outage has resulted in a massive decline of nearly 10% over the past week, with AVAX now trading at $36, according to BeInCrypto data.

Read more: Avalanche (AVAX) Price Prediction 2024/2025/2030

Despite this, crypto traders remain bullish on AVAX, citing major institutional players and potential adoption.

“Now I'm collecting as much AVAX as I can. As more and more financial institutions realize that Avalanche is their preferred blockchain, the value of the red coin will skyrocket. I don't need to play with memecoins or NFTs, this is my generation of wealth business,” said Avalanche's confirmation 0xSpartacus.