Arbitrum (ARB) Faces Major Outage Due to Increased Network Traffic
Arbitrum, a popular layer-2 scaling solution for Ethereum, experienced a significant outage on Friday morning. The protocol’s sequencer, responsible for organizing user transactions, came to a halt at 7:29 a.m. PST and resumed operations at 8:57 a.m. PST. Arbitrum plans to release a post-mortem report on the outage soon, stating that a surge in transactions caused the sequencer to stop relaying them properly.
Although the protocol resumed operations, gas prices didn’t stabilize until around 1 p.m. PST. As a result of the incident, ARB, the project’s native token, has dropped more than 6% in the past 24 hours. This decline is double the average crypto price movement on Friday when the overall market cap decreased by 3.2%, according to CoinGecko.
Arbitrum’s TVL and Importance
Arbitrum currently ranks fourth in terms of total value locked (TVL), following Ethereum, Tron (TRX), and Binance Smart Chain (BSC). The project holds $2.345 billion in TVL, according to DeFi Llama. TVL indicates the amount of capital deposited within a protocol’s smart contracts and serves as an indicator of a crypto ecosystem’s health.
Hot Take: Arbitrum Faces Setback as Outage Impacts Token Performance
The recent outage experienced by Arbitrum due to increased network traffic has negatively affected its native token, ARB. With a drop of over 6% in the past 24 hours, ARB has suffered more than the average cryptocurrency price movement on Friday. This setback highlights the importance of maintaining stable and reliable infrastructure in the crypto space to avoid disruptions and maintain investor confidence. Arbitrum’s TVL, although significant, may also be impacted by such incidents, underscoring the need for robust scalability solutions in the Ethereum ecosystem.
By
By
By
By
By