The Canto blockchain, a layer-1 platform renowned for its decentralized finance (DeFi) services, has been experiencing various issues since August 10. While the issues have been linked to a consensus-related malfunction, it has brought all network transactions to a halt, affecting users and ultimately impacting their confidence in the chain.
The Canto development team confirmed the issue through a statement on social media platform X, formerly known as Twitter. Per the statement, it is official that the blockchain has stopped processing transactions at the moment. However, the team also assured the community that user funds remain secure. They explained that the halt was caused by a consensus issue and a fix is scheduled for August 12 at 12:00 UTC.
By all expectations, normalcy should return to the network after the fix, even as users get back to their activities on the platform.
CANTO Plunges But Hope Remains
While not exactly surprising, the outage has negatively affected Canto’s native token, CANTO. On the day of the disruption, the token’s value fell by 21%, further extending its year long losses.
To put the above statement into perspective, the CANTO token has shed over 83% of its value since May.
As it turns out, this recent technical glitch has not helped matters in any way. It comes at a challenging time for Canto, which has not only been struggling with the depleting value of its token, but also grappling with a steep decline in on-chain activity.
Recent data from DefiLlama reveals a sharp drop in the platform’s total value locked (TVL), from over $200 million in March to just around $13.7 million today. Such a massive drop in TVL shows the amount of struggle that Canto continues to face in maintaining investor confidence and market traction since its launch in August 2022.
Interestingly, though, despite the massive drops, there have been a few positive signs of recovery over the past weekend. This might signal some sort of renewed interest among investors as the team attempts to take control of the technical situation.
