Canto Blockchain Outage Halts All Network Activity, CANTO Token Price Drops

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.

A layer-1 blockchain called Canto, which is a part of the Cosmos network, experienced a significant outage on August 10, which brought all network activity to a halt.

This disruption caused a sudden halt in transactions on the blockchain.

Crucial Role of Consensus Mechanism in Canto’s Outage

According to data from Cantoscan, the blockchain last processed transactions at block height 10847517. The consensus process, as stated in the team's recent official statement, is at the heart of this issue. A consensus mechanism is essential in the blockchain realm for validating transactions and ensuring network security.

The development team swiftly intervened to assure users that their funds were still safe despite the critical nature of the outage. A planned upgrade to address the issue is scheduled for August 12 at 12:00 UTC.

“Once the chain resumes, users will be able to access all activities as usual,” stated the Canto team.

However, the Canto team has not yet provided a more in-depth explanation of this problem.

The outage led to a sharp decline in the price of CANTO's token, which fell to as low as $0.036. Yet, the market has reacted favorably to the news of the planned fix, with the token price recovering to $0.045 at the time of writing. This marks a 13.5% rebound within 24 hours.

The outage impacted not only CANTO's token price but also the decentralized finance (DeFi) ecosystem within the Canto blockchain. According to data from DefiLlama, the total value locked (TVL) in Canto's DeFi platforms decreased from $16.34 million on August 10 to $15.61 million as of August 12.

Launched in August 2022, Canto quickly gained attention for its wide range of DeFi offerings, including lending, staking, and liquidity provision.

The platform initially planned to join the Ethereum ecosystem as a layer-2 solution, but this was later reversed in March 2024. As a result, Canto has continued to operate independently as a layer-1 blockchain.