Toncoin halted: 3-hour network outage triggers price, volume dip

TON

As a seasoned crypto investor with a knack for navigating the volatile blockchain landscape, I must admit that network downtime incidents like TON‘s are a double-edged sword. On one hand, it can instill a sense of unease among users, raising questions about the robustness and reliability of the network. On the other, it presents an opportunity for the team behind the project to demonstrate their mettle in resolving issues swiftly and efficiently.

Without a doubt, Toncoin [TON] has been rapidly expanding, and its operation up till now has been smooth as silk. However, recent updates suggest that the network encountered its initial downtime issue this morning.

Initial findings from Tonscan suggest that Ton’s block generation temporarily stopped for around three hours. A representative from the TON Foundation has disclosed that this outage was primarily due to an excessive number of transactions, with Dog-related transactions being the main culprits.

Due to the period of inactivity, several cryptocurrency exchanges such as Binance and ByBit temporarily halted deposit and withdrawal transactions involving TON.

As a researcher, I’ve observed that an interruption in the network seemingly disrupted the agreement among validators, leading to a standstill. To get things moving once more, validators were required to restart the network. Fortunately, TON had previously addressed this issue and resumed network operations at the time of reporting.

Assessing impact on Toncoin and user confidence

Even though a network outage might cause some erosion of user trust, TON‘s swift action and quick network recovery can help minimize any damage to confidence levels.

The rapid reaction and network restoration also downplay the severity of the incident.

Currently, TON is following in the footsteps of networks like Solana, both having encountered periods of downtime previously. Notably, TON’s network has seen a significant surge in activity, experiencing accelerated expansion since late February.

On a peak day in July, the daily transactions for TON reached an astounding $11.31 billion. However, the pace has since eased, with an average of approximately $7.81 billion transacted on a typical Monday.

The significant decrease in activity during that incident might have significantly affected the overall volume, as it dropped down to approximately $163.18 million within a 24-hour period.

Toncoin halted: 3-hour network outage triggers price, volume dip

Network congestion is usually the main culprit behind most network downtime incidents. So, lets take a look at how busy TON has been in that regard.

Over the past three months, on-chain analysis shows that the number of active cryptocurrency addresses has fluctuated between approximately 500,000 and 1.6 million.

In just the past five days, the number of active cryptocurrency wallets has seen a dramatic surge. As of 26th August, there were approximately 2.23 million active wallets, compared to only 611,000 on 22nd August.

Toncoin halted: 3-hour network outage triggers price, volume dip

During the same timeframe, the number of new addresses increased dramatically from 187,000 to approximately 1.1 million. This significant surge in addresses supports the idea that a high volume of transactions could have caused the network outage.

Read Toncoin [TON] Price Prediction 2024 -2025

Toncoin dipped back to levels last seen in August, following a steep 26% decline over the weekend. At the moment of writing, it had dropped by 2.98%, trading at approximately $5.25.

It’s uncertain at this point if the recent outage will impact the short-term need for Toncoin, given that the network has been restored.

2024-08-28 11:52

Assessing impact on Toncoin and user confidence

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