Solana came dangerously close to a network shutdown due to an outage at one hosting provider

On 12 August 2026, the Solana network stood on the brink of a complete transaction halt. Due to a routing error at infrastructure provider Teraswitch, nearly 29% of all staked SOL went offline, while the network only stops processing transactions at 33.34%. The incident drew little attention, but was far more serious than it appeared.

Solana is available at OKX and Bybit.

In brief:

• 28.83% of all staked SOL went offline due to a routing error at a single hosting provider, putting the network 86% of the way towards a full halt.
• Around 90 validators were affected, one of which (AS20326) hosted as much as 27.34% of all network stake.
• After roughly 33 minutes, traffic recovered; the affected validators lost a combined 333 SOL in rewards.

One error, almost a complete network halt

Around 03:45 UTC, a large portion of Solana validators began going offline. At the peak, at 03:58 UTC, 28.76% of all staked SOL was registered as delinquent. That amounts to more than 125 million SOL. The threshold at which Solana stops finalising transactions is 33.33%, which corresponds to nearly 145 million SOL. At that point, only a margin of 19.9 million SOL remained before the network would have actually ground to a halt.

The cause was a routing problem at Teraswitch, an infrastructure provider that hosts a large portion of Solana validators. After around 33 minutes, network traffic recovered and the validators came back online one by one. As a result, the damage was limited to 333 SOL in missed rewards, spread across the roughly 90 affected validators.

Concentration risk as a structural problem

What makes this incident particularly striking is the enormous concentration of network stake with a single provider. AS20326 alone hosted 118.9 million SOL, representing 27.34% of total network stake. Of that amount, 94% went offline simultaneously. The fact that a single party can bring down such a large portion of the network points to a serious concentration risk in Solana’s infrastructure.

Marinade Finance, which published the data, says it will use the incident to review its own concentration limits. This concerns not only the distribution across hosting providers, but also the spread across data centres and the availability of failover solutions at validators. Solana currently stands at $75.61, up 0.5% over the past 24 hours.