- TON was down for almost three hours as block production halted reportedly due to congestion.
- Assessing the impact of the downtime on the network.
Toncoin [TON] has no doubt been one of the fastest growing networks and its runtime has been flawless until now. Fresh reports indicate that the network experienced its first downtime incident this morning.
Preliminary reports found using Tonscan show that block generation on Ton halted for almost three hours. One of the TON Foundation members revealed that the downtime was caused by transactions overload, mainly involving DOGS.
The downtime resulted in the suspension of deposits and withdrawals via TON by multiple exchanges. This includes Binance and ByBit.
The downtime reportedly caused a loss of consensus among validators. This means that validators have to restart the network to kick things into motion again. TON had already fixed the issue and restored network operations at press time.
Assessing impact on Toncoin and user confidence
While network downtime may trigger some loss of confidence among users, TON’s rapid response and network restoration may dilute any confidence fallout.
The rapid reaction and network restoration also downplay the severity of the incident.
TON now joins the likes of Solana which also has a history of downtime. The network has so far experienced robust growth in volume, with exponential growth taking place since the end of February.
TON’s highest daily transaction volume peaked at $11.31 billion in July. It has since slowed down with volume averaging $7.81 billion on Monday.
The downtime incident may have had a noteworthy impact on total volume because it dipped as low as $163.18 million in the last 24 hours.
Source: IntoTheBlock
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.
On-chain data reveals that active addresses have been hovering between 500,000 and 1.6 million addresses within the last 3 months.
Address activity grew exponentially in the last five days. The number of active addresses grew from 611,000 on 22nd August to 2.23 million addresses as of 26th August.
Source: IntoTheBlock
New addresses were up from 187,000 to 1.1 million addresses during the same period. This lends credence to the claim that transaction overload may have been the trigger behind the network downtime incident.
Read Toncoin [TON] Price Prediction 2024 -2025
Toncoin retested its August lows after tanking by as much as 26% during the weekend. It was down by 2.98% in the last 24 hours to a $5.25 press time price.
Source: TradingView
It remains unclear whether the downtime incident will affect demand for Toncoin in the near term. Especially now that the network is up and running again.
