The CANTO token saw a significant decline of 21% at first but managed to bounce back over the weekend.
Canto, a layer-1 blockchain platform, has been experiencing a consensus issue since August 10, rendering the network unable to process any transactions. The blockchain came to a complete standstill on Saturday, prompting the development team to address the issue via a post on social media platform X.
In the announcement, the team assured users that their funds remained safe throughout this downtime. Additionally, they announced an upcoming upgrade on Monday, August 12, at 12:00 UTC, to resolve the consensus issue and resume regular chain operations.
“Canto chain is currently experiencing an issue with consensus that has caused the chain to halt,” Canto said in an announcement on X. “An upgrade to address this issue will be carried out on Monday, August 12 UTC 12:00. All funds are safe. Once the chain resumes, users will be able to access all activities as usual.”
According to Etherscan data, only three transactions were recorded on August 10, and there has been no further activity since that date. The recent announcement also revealed that an upgrade to address this issue will be carried out on Monday, August 12, at 12:00 UTC. Once this upgrade is complete, the team anticipates that regular blockchain functions will resume, enabling users to engage in all platform activities as they typically would.
The incident has had a substantial impact on Canto's native token. Initially, the CANTO token saw a steep drop of 21% in its value and has plummeted 83% since May. Nevertheless, over the weekend, it began to recover, easing some of the earlier losses.
The outage comes at a time when the Canto network is experiencing a notable decline in on-chain activity. According to data from DefiLlama, the platform’s total value locked (TVL) has seen a dramatic fall, plummeting from more than $200 million in March to around $13.7 million currently.
Canto, which debuted in August 2022, quickly gained attention among investors thanks to its range of DeFi offerings, such as lending, staking, and liquidity provision. However, despite this initial success, the platform has struggled to sustain its growth, as reflected in the recent drop in TVL and the value of its tokens.
