TONcoin (TON), the inherent cryptocurrency of the TON blockchain, experienced a 5% decline late Wednesday following an alarming disruption where no new blocks were generated for over three hours, as reported by on-chain metrics.

Such an extended hiatus in block production is particularly worrisome, as it jeopardizes the stability of the network. The absence of new blocks could pave the way for potential security vulnerabilities and prolonged transaction delays. Although rare, these disruptions can manifest during periods of heightened network activity.

For TON, the recent airdrop of the DOGS memecoin is speculated to have been the catalyst for this disruption. The token’s surge in popularity inundated the network with a flurry of transactions, outstripping the blockchain’s capacity to process them efficiently. Observers noted that the network’s transactions per second (TPS) fell significantly short of anticipated benchmarks, exacerbating the situation.

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In light of TON’s block production freeze, Bybit, a prominent cryptocurrency exchange, temporarily halted all withdrawals and deposits related to TON, citing the blockchain’s instability. This development was highlighted in a recent announcement by Wu Blockchain.

Compounding the issue, the recent arrest of Pavel Durov, the CEO of Telegram, in France added to the turmoil, causing TON’s market value to plummet. Despite the distinct separation between Telegram and TON, the two are often intertwined in public perception, amplifying the market’s reaction.

Prior to the freeze, TON had been defying broader market trends, registering gains over the past 24 hours while other leading cryptocurrencies saw declines of 4% or more.