Coinbase Experiences Technical Issues Amidst Base Network Congestion
Leading American crypto exchange Coinbase is currently facing technical difficulties attributed to congestion on the Base network. Unlike previous instances that were caused by increased trading activity during Bitcoin’s surge, this wave of problems can be traced back to Base, an Ethereum scaling network that Coinbase itself helped develop.
According to Coinbase’s status page, transactions on Coinbase Wallet and Coinbase.com may encounter intermittent failures due to network congestion on the Base network. Users are advised to wait for congestion to resolve or resubmit their transactions. Meanwhile, pending transactions will be completed once fees decrease.
The Cause: Base Network Congestion
Base transactions have experienced a significant spike in recent days following the launch of the Ethereum Dencun upgrade, which aimed to reduce transaction fees on layer-2 scaling networks. As a result, Base, which utilizes Optimism’s scaling technology, has witnessed a substantial decrease in fees, plummeting by more than 90% alongside other networks.
Data from Dune reveals a notable increase in transaction volume on the Base network, surging from an average of approximately 400,000 daily transactions before the Dencun upgrade to over a million transactions per day in recent days. On Saturday, Base set a new daily transaction record with 2.12 million transactions.
Coinbase’s Response and User Guidance
In response to these issues, Coinbase representatives have provided guidance for users with pending transactions:
- If possible, users should cancel their pending transactions and resubmit them with the latest estimated gas fee.
- If cancellation is not feasible, the transaction will be completed once traffic subsides.
- The Coinbase Wallet team is actively working on implementing a transaction cancellation feature and will provide updates when available.
Coinbase assures its users that their funds are safe and that pending transactions will be processed once fees reduce.
Impact of the Ethereum Dencun Upgrade
The recent launch of the Ethereum Dencun upgrade has had a profound impact on transaction fees and scalability in the crypto space. By reducing fees on layer-2 scaling networks, the upgrade has incentivized increased usage of these networks, leading to congestion on platforms such as Base.
Hot Take: Coinbase Navigates Base Network Congestion Amidst Ethereum Scaling Challenges
Coinbase, one of the leading cryptocurrency exchanges in the United States, is currently grappling with technical difficulties caused by congestion on the Base network. While previous issues were attributed to heightened trading activity during Bitcoin’s price surge, this particular incident can be traced back to Base, an Ethereum scaling network incubated by Coinbase itself.
The surge in Base transactions follows the introduction of the Ethereum Dencun upgrade, which aimed to alleviate transaction fees on layer-2 scaling networks. As a result, Base experienced a significant decrease in fees alongside other networks, leading to an influx of transactions and subsequent congestion.
To address these challenges, Coinbase advises users to either wait for congestion to subside or resubmit their transactions. The exchange also assures users that pending transactions will be completed once fees decrease. Furthermore, Coinbase’s Wallet team is actively working on implementing a transaction cancellation feature to enhance user experience.
The Ethereum Dencun upgrade has undoubtedly revolutionized transaction fees and scalability within the crypto industry. However, its rapid adoption has presented challenges for platforms like Coinbase and its associated network—Base. As the crypto landscape continues to evolve, exchanges must adapt to ensure smooth user experiences amidst scaling hurdles.
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