CANTO Price Surges by 13.5% as Developers Promise Network Outage Fix

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.

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Consensus Mechanism at the Core of Canto’s Outage

Data from Cantoscan revealed that the last time the blockchain processed transactions was at the block height of 10847517. According to the team’s latest official statement, the consensus mechanism is the heart of this issue. In the context of blockchain, a consensus mechanism is vital for validating transactions and maintaining network security.

Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024

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Despite the critical nature of the outage, the development team assured users that their funds remained secure. A scheduled upgrade to resolve the problem is set for August 12 at 12:00 UTC.

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

However, the Canto team has yet to provide a more detailed explanation of this issue.

The outage caused a sharp decline in CANTO’s token price, which dropped to as low as $0.036. However, the market has responded positively to the news of the scheduled fix, with the token price recovering to $0.045 at the time of writing. This figure represents a 13.5% rebound within 24 hours.

In addition to impacting CANTO’s token price, the outage also affected the decentralized finance (DeFi) ecosystem within the Canto blockchain. Data from DefiLlama indicates that the total value locked (TVL) in Canto’s DeFi platforms fell from $16.34 million on August 10 to $15.61 million as of August 12.

Canto’s Blockchain Struggles Continue as New Issues Arise Post-Upgrade

In the latest development, the Canto team has implemented their upgrade according to the planned schedule. However, the blockchain has halted block production again after momentarily coming back online “due to unforeseen secondary effects linked to a proposer priority issue.” Cantoscan data shows that the last processed transaction occurred 17 hours ago.

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The Canto team claimed that B-Harvest, Canto’s core contributor, is actively working on a “state compatible upgrade.” This upgrade will automatically adjust the proposer priority.

The team expects this fix to be ready in approximately 15 hours. It will allow validators to resume block production on the revised V8 Canto. The team also ensures that all users’ funds remain secure and that users will regain full access to activities once the chain is operational again.

Despite the relapse, CANTO’s token witnessed a dramatic increase of over 40% in the last 24 hours. It is now trading at $0.060 after surging to as high as $0.083 during morning Asia market time.

Read more: What is a Layer-1 Blockchain?

Canto was launched in August 2022. It quickly drew interest for its extensive DeFi services, such as lending, staking, and providing liquidity.

The platform initially had ambitions to join the Ethereum ecosystem as a layer-2 solution. However, this plan was reversed in March 2024. Consequently, Canto has continued to operate as a layer-1 blockchain.