The rising price of Bitcoin and the subsequent traffic from users overwhelmed even the biggest crypto exchanges in the world. Both Kraken and Coinbase went dark on Thursday afternoon after the Bitcoin price hit $40,000 and caused unprecedented traffic on the platforms. Both recovered from the issue and have gone live again.
Effects similar to a DDoS attack
A DDoS attack is a situation when a malefic actor sends a huge load of traffic to cripple a platform and gain entry into its systems to steal information or cryptocurrencies. With the excitement around Bitcoin rising, the price of the cryptocurrency soared past $40,000 on Thursday because of which traffic increased to unprecedented levels.
Major crypto exchanges have now restored their operations after they went down and remained inaccessible for several hours on Thursday. The service outage occurred today, leaving users unable to access their accounts. The outage was reported on social media by numerous users who shared screenshots of Coinbase and Kraken showing connectivity issues.
Slower response times
Kraken wrote on its website that it is experiencing slower response times and its application programing interface is down. Clients also said that they have experienced difficulty in connecting to the site, mobile apps, and APIs. The exchange said that the issue occurred because of heavy traffic. It said that there were an unexpected surge in user volumes and transaction numbers which led to a server outage. The markets are currently in cancel-only mode only while the system status is being verified.
Later, the firm wrote to its users to inform them of the restoration of the systems and said,
“all affected components have returned to a fully operational state. The engineering team will continue to monitor site performance. We will continue to provide updates as necessary.”
While the rise of Bitcoin prices is bringing a fresh surge of activity on crypto platforms, it has become difficult for the exchanges to handle unprecedented volumes. Coinbase suffered from outages for the second straight day. This led to social media outrage amongst users who were unable to trade.