- Avalanche C-Chain, home to AVAX DeFi projects, stalled for 5+ hours, sparking concern across crypto community as main chain halted
- Outage coincided with 5th straight day of AVAX price declines, now down to $36 after starting week at $40, indicating growing risk of bullish trend reversal
- Outage linked to new inscription wave before stall; founder believes “esoteric bug” related to mempool handling and inscriptions caused halt; network recovery underway but stability fluctuating.
The native token of the Avalanche blockchain network has slumped in value as the network suffers an outage. This latest setback for the “Ethereum killer” comes at a challenging time for the AVAX cryptocurrency.
Avalanche C-Chain Block Production Stalls
The Avalanche C-Chain, home to infrastructure for most DeFi projects on AVAX, has been stalled for over five hours at the time of writing. This has sparked concern across the crypto community as the main chain ground to a halt.
Ava Labs co-founder Kevin Sekniqi tweeted that the C-Chain now seems to be moving again but he is still observing the situation. The Avalanche status page states that block finalization is starting to resume but stability will fluctuate as validators update.
AVAX Price Impact
The outage coincides with the fifth straight day of declines for the AVAX token. After starting the week trading around $40, AVAX has now dropped to around $36.
Broader technical analysis shows the cryptocurrency trading sideways in 2024 after fluctuating between $27 and $43 over the past year. For swing traders, AVAX still indicates a long-term bullish trend but one at growing risk of reversal.
Outage Linked to Inscriptions Update
Earlier, Ava Labs indicated the sudden halt in block production could stem from a new inscription wave launched shortly before the stall began.
Avalanche founder Kevin Sekniqi said he believes the culprit is “some esoteric bug from some edge case” related to mempool handling and inscriptions. So far, no further details have emerged as developers work to resolve the technical glitch.
Network Recovery Underway
The Avalanche status page now states that block finalization is starting to resume across the primary network. However, stability is expected to fluctuate as validators continue updating.
For now, the “Ethereum killer” remains stalled as developers investigate the cause of the outage. This latest setback will likely fuel further doubts over Avalanche’s ability to challenge Ethereum’s dominance in DeFi. The coming hours and days will prove critical for restoring faith in the network.
