Canto, a Layer-1 blockchain network built on the Cosmos network, experienced a significant outage on August 10, halting all network activity. This outage caused a sudden stop in transactions within the ecosystem. Data from Cantoscan revealed that the last processed blockchain transaction was at block height 10847517.
What Is Happening with Canto?
According to the latest official statement from the team, the consensus mechanism was the focal point of this issue. In the context of a blockchain network, a consensus mechanism is vital for validating transactions and ensuring network security.
Despite the critical nature of the outage, the development team assured users that their funds remained secure. A planned upgrade to resolve the issue will take place on August 12. The Canto team stated:
“When the network restarts, users will be able to access all activities as usual.”
However, the Canto team has not yet provided a more detailed explanation of the issue. The outage caused a sharp drop in CANTO’s token price to $0.036. However, the market responded positively to the news of the planned fix, and the token price rebounded to $0.045 at the time of writing, representing a 13.5% recovery within 24 hours.
Details on the Issue
In addition to affecting CANTO’s token price, the outage also impacted the decentralized finance (DeFi) ecosystem on the Canto blockchain network. Data from DefiLlama showed that the total value locked (TVL) in Canto’s DeFi platforms dropped from $16.34 million on August 10 to $15.61 million as of August 12.
Canto was launched in August 2022. The ecosystem quickly gained attention due to its comprehensive DeFi services, including lending, staking, and liquidity provision. Initially, the platform aimed to join the Ethereum ecosystem as a Layer-2 solution. However, this plan was reversed in March 2024. As a result, Canto continued to operate as a Layer-1 network.
