On August 12, a routing failure at the infrastructure provider TeraSwitch caused validators responsible for 28.83% of staked SOL to go offline simultaneously. This situation brought the network close to the critical 33.34% threshold, beyond which transaction finalization would cease. The Marinade Finance team reported this incident.
1/ Solana got 86% of the way to a halt this morning and it barely registered anywhere.
ā Marinade š”ļø (@MarinadeFinance) August 12, 2026
28.83% of staked SOL went delinquent. Finality stops at 33.34%.
We added up the rewards lost across all 90 affected validators. 333 SOL. pic.twitter.com/EEC2gYwQgz
The incident impacted approximately 90 validators. The TeraSwitch autonomous system was handling 118.9 million SOL, which represents 27.34% of the total stake in the network. During the outage, 94% of this amount was affected.
Fortunately, the critical threshold was not crossed. Routing was restored after about 33 minutes, allowing validators to reconnect to the network. During the downtime, they lost approximately 333 SOL in rewards.
Outage Highlights a Key Issue
Marinade labeled the event as an example of infrastructure concentration risk. The project plans to review its validator distribution across autonomous systems, data centers, and backup infrastructure.
This issue existed prior to the incident. As of July 22, TeraSwitch was servicing validators holding about 27.1% of staked Solana tokens, followed by UAB Cherry Servers (12.7%) and Latitude.sh (11%).
Source: Validators Solutions.Some major operators are already diversifying their infrastructure across multiple providers. In its first-quarter report, Coinbase noted that 13 of its validators operate through TeraSwitch, while another 10 use Latitude.
For each of these, the company also employs a backup server in a different location. The exchange explained that this strategy is necessary to mitigate the impact of a single provider's failure.
It is worth recalling that in November 2022, the German hosting provider Hetzner shut down servers hosting Solana nodes. At that time, around 40% of validators, accounting for roughly 20% of the total staked coins, were reliant on its infrastructure. The network continued to function.
As of January 2026, the number of active validators on Solana fell to 800, the lowest level since 2021. At its peak in 2023, there were over 2,500 validators.