Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance, two of the largest cryptocurrency exchanges, saw hundreds of transactions jammed, leading to trading delays. In a blog post by Coinbase, during the fees peak, at 11 pm PST, a total of 559 transactions, deposits, and withdrawals were delayed.

The post reads:

“Starting at 9:45 pm PST, 559 transactions were delayed. The backlog of transactions started clearing 15 minutes after the peak of the fee spike and was fully processed in 110 minutes.”

Coinbase ETH Fees
Source: Coinbase

What Caused the Network Clog?

On the Ethereum blockchain, all transactions are charged a fee that is paid to miners that verify and confirm transactions. This network fee is determined by the variable demand for fixed processing capacity whereby when there is a significant demand, fees will rise and fall when demand is low.

The clog started at about 9.45 pm PST, causing a delay across the ETH and ERC20 tokens with the average delay spiking at 11:30 pm PST at 105 minutes.

Trading remained stable through the clogging moment, with only deposits and withdrawals affected. As of now, Ethereum Classic remains in the status of ‘degraded performance' on Coinbase.

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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