TONcoin Network Disruption: Causes and Consequences

TONcoin Faces Network Disruption Amid Increased Activity

TONcoin (TON), the native cryptocurrency of the TON blockchain, experienced a notable decline of 5% late Wednesday due to a significant network issue. On-chain data revealed that the protocol failed to produce any blocks for over three hours, raising concerns about the blockchain’s operational stability. Extended periods without block production can severely disrupt network functionality, leading to potential security risks and transaction delays that may affect users and investors alike.

Such disruptions are relatively rare in the blockchain space, yet they can happen during peak periods of network activity. Recently, the surge in transactions was likely influenced by a popular airdrop of the DOGS memecoin, which attracted considerable attention. Observers noted that the TON network struggled to keep pace with the rising demand, as its transactions per second (TPS) fell significantly below expectations.

This situation is reminiscent of an incident involving Solana earlier this year, where the blockchain was unable to generate new blocks for over five hours, resulting in intense sell pressure on its native token, SOL. In light of TON’s recent network challenges, Bybit, a prominent cryptocurrency exchange, announced the temporary suspension of withdrawals and deposits for TON, citing ongoing network instability as the reason for this precautionary measure, as reported by Wu Blockchain.

Adding to the turmoil surrounding TON, the recent arrest of Pavel Durov, CEO of Telegram, in France also contributed to a sharp decline in the token’s price. It’s important to note that while Telegram and TON are often associated with each other, they function as separate entities within the crypto ecosystem.

Prior to the network’s freeze, TON had actually bucked the prevailing market trend, registering gains over the past 24 hours while many major cryptocurrencies faced declines of 4% or more.