The Layer-1 blockchain, Canto, has encountered a significant disruption, remaining offline since Saturday as a result of a critical “consensus issue.” This interruption initially led to a steep 21% decline in the value of the CANTO token, though the token managed to recoup some losses over the weekend.

Insights from Etherscan reveal that merely three transactions were processed on August 10th, with no further activity recorded since then. The situation was addressed in an announcement on X (formerly Twitter) by Canto, stating, “The Canto chain is currently experiencing an issue with consensus that has caused the chain to halt. An upgrade to address this issue will be carried out on Monday, August 12, UTC 12:00. All funds are safe. Once the chain resumes, users will be able to access all activities as usual.”

Since its launch in August of the previous year, Canto has witnessed rapid expansion, with its total value locked (TVL) skyrocketing to over $200 million by March. This surge was fueled by a wave of investor interest in its DeFi offerings, including lending, staking, and liquidity provision. However, this initial momentum has since waned, with on-chain activity diminishing sharply. According to data from DefiLlama, the TVL has plummeted to a mere $13.7 million. The CANTO token itself has suffered a significant downturn, plummeting 83% since May 24th.

This outage underscores the challenges that emerging blockchains face in maintaining stability and user confidence. As Canto prepares for its critical upgrade, the community watches closely, hoping for a swift resolution that will restore the network’s functionality and bolster its long-term prospects.