Layer-1 blockchain Canto has experienced a two-day outage due to a consensus problem, causing the blockchain to halt all transactions since Saturday, Aug. 10. The CANTO token initially dropped by 21% in response to the issue but has since recovered over the weekend.
According to data from Etherscan, only three transactions were processed on Aug. 10, and there has been no activity on the blockchain since then. In an announcement on X, Canto stated that a fix for the consensus problem will be deployed on Monday, Aug. 12 at 12:00 UTC. The announcement reassured users that all funds are safe and that normal activities will resume once the upgrade is complete.
Canto saw significant growth since its launch in August last year, with total value locked (TVL) reaching over $200 million in March as investors participated in various DeFi services such as lending, staking, and providing liquidity. However, on-chain activity has declined rapidly since then, with TVL dropping to just $13.7 million, according to DefiLlama. The CANTO token has also decreased by 83% since May 24.
Despite the recent challenges faced by Canto, the blockchain remains committed to addressing the consensus issue and ensuring the security of user funds. The team is working diligently to resolve the outage and restore normal operations as soon as possible.
CoinDesk, an award-winning media outlet covering the cryptocurrency industry, reported on the Canto outage and emphasized the importance of maintaining editorial policies to ensure journalistic independence. CoinDesk was acquired by the Bullish group in November 2023, which is majority-owned by Block.one and has interests in various blockchain and digital asset businesses.
As the blockchain industry continues to evolve, incidents like the Canto outage serve as a reminder of the importance of robust infrastructure and proactive risk management. Investors and users in the cryptocurrency space should remain vigilant and stay informed about developments that may impact their holdings and transactions.