Cryptocurrency exchange Kraken faced connectivity issues on its API, website, and mobile apps today. The longest-running crypto exchange said that the issues were related to heavy traffic on its platform.
An unexpected surge in volumes
The exchange said that it is experiencing slower response times on its website, API, and mobile apps because of an unexpected surge in volumes. It said that ‘very heavy traffic’ on the platform led to downtime in its application programming interface. The issue affected the ‘Buy Crypto’ tool on the website alongside web and mobile card payments.
Kraken stated, “We are working to resolve the issue and will update as soon as we have more information,” Kraken updated on its status page before adding “The issue has been identified and a fix is being implemented.”
Crypto outages continue
On Monday, rival crypto exchange Coinbase also suffered partial outages on its platform because of which the users panicked. The crypto market is going through wild upswings with Bitcoin price touching $18,000. The San Francisco based company struggled with its trading operations for two hours before getting its service back to normal.
In the last few days, most of the crypto exchanges have faced issues because of the growing price of Bitcoin and the rise in volumes because of this change. Bitcoin is nearing its all-time high once again which is creating renewed interest in the market. The sudden rise in volume can be compared to a DDoS attack where hackers spam a firm’s servers with a large number of transactions. The servers get overwhelmed, leading to outages, slower response times, etc.
Previously, several prominent brokerage houses like TD Ameritrade and zero commission trading app Robinhood also underwent similar outages. Some customers experienced slow response while others were locked out of their accounts and were unable to trade during wild swings in the market. All platforms unanimously talked about the rise in trading volumes and the number of transactions as the primary reason behind the outage.