Destiny uses a peer-to-peer networking system. This means that your connection has to send and receive data not only with a Bungie server but with any and all players that are in the same game instance as you. If you see packet loss increasing as players enter your game instance then it is indicative that your connection has issues connecting to more than once source at a time. This can be a connection quality issue or it can be that your Internet connection may not meet or may barely meet the minimum connection standards for this game. The minimums is 1Mbps up and down speeds. However, due to network overhead and other activity possibly happening on your network it is generally expected a player try and have at least 5Mbps up and down speeds.