Solana Near Halt as Data Center Outage Takes 29% of Stake Offline

A routing failure at data center provider Teraswitch brought the Solana blockchain dangerously close to a complete network halt on Wednesday morning, August 12, 2026, knocking nearly 29% of staked tokens offline and exposing critical concentration risks in the network's infrastructure. The incident, which lasted approximately 33 minutes, saw the network come within 4.51 percentage points of the 33.34% threshold at which Solana can no longer finalize transactions.

The outage originated at Teraswitch's Miami facility, where a default route was incorrectly advertised. This erroneous route was then propagated by a route reflector in Amsterdam to data centers across Europe and Asia, leaving 12 sites in London, Amsterdam, Dublin, Frankfurt, Singapore, and Tokyo without a usable network path. North American locations were not affected. According to a technical report from Teraswitch, engineers identified the problem within about 10 minutes, and full service was restored by 04:16 UTC.

Staking platform Marinade Finance analyzed the aftermath and reported that approximately 90 validators went delinquent during the outage. Together, they held 28.83% of total staked SOL, bringing the...