CANTO Price Surges by 13.5% as Developers Promise Network Outage Fix
08/12/2024 19:00
CANTO's price rebounds 13.5% after a network outage. A scheduled upgrade aims to resolve the consensus issue and restore normal operations.
Canto, a layer-1 blockchain built on the Cosmos network, experienced a significant outage on August 10, halting all network activity.
This disruption led to a sudden stop in transactions in the blockchain.
Consensus Mechanism at the Core of Canto’s Outage
Data from Cantoscan revealed that the last time the blockchain processed transactions was at the block height of 10847517. According to the team’s latest official statement, the consensus mechanism is the heart of this issue. In the context of blockchain, a consensus mechanism is vital for validating transactions and maintaining network security.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
Despite the critical nature of the outage, the development team assured users that their funds remained secure. A scheduled upgrade to resolve the problem is set for August 12 at 12:00 UTC.
“Once the chain resumes, users will be able to access all activities as usual,” the Canto team stated.
However, the Canto team has yet to provide a more detailed explanation of this issue.
The outage caused a sharp decline in CANTO’s token price, which dropped to as low as $0.036. However, the market has responded positively to the news of the scheduled fix, with the token price recovering to $0.045 at the time of writing. This figure represents a 13.5% rebound within 24 hours.
In addition to impacting CANTO’s token price, the outage also affected the decentralized finance (DeFi) ecosystem within the Canto blockchain. Data from DefiLlama indicates that the total value locked (TVL) in Canto’s DeFi platforms fell from $16.34 million on August 10 to $15.61 million as of August 12.
Read more: What is a Layer-1 Blockchain?
Canto was launched in August 2022. It quickly drew interest for its extensive DeFi services, such as lending, staking, and providing liquidity.
The platform initially had ambitions to join the Ethereum ecosystem as a layer-2 solution. However, this plan was reversed in March 2024. Consequently, Canto has continued to operate as a layer-1 blockchain.
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Lynn Wang is a seasoned journalist at BeInCrypto, covering a wide range of topics, including tokenized real-world assets (RWA), tokenization, artificial intelligence (AI), regulatory enforcement, and investments in the crypto industry. Previously, she led a team of content creators and journalists for BeInCrypto Indonesia, focusing on the adoption of cryptocurrencies and blockchain technology in the region, as well as regulatory developments. Prior to that, at Value Magazine, she covered...
Lynn Wang is a seasoned journalist at BeInCrypto, covering a wide range of topics, including tokenized real-world assets (RWA), tokenization, artificial intelligence (AI), regulatory enforcement, and investments in the crypto industry. Previously, she led a team of content creators and journalists for BeInCrypto Indonesia, focusing on the adoption of cryptocurrencies and blockchain technology in the region, as well as regulatory developments. Prior to that, at Value Magazine, she covered...
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