Technical Glitch Leads to 50% Drop in Zilliqa On-Chain Transactions – What’s Going On?

Fredrik Vold
Last updated: | 1 min read
Zilliqa logo
Source: AdobeStock / Alexander

The Zilliqa blockchain is grappling with a “critical situation” resulting in a significant disruption to its network.

Developers announced the presence of a “technical issue” on social media platform X on Monday, saying it has led to an interruption in block production, causing a substantial drop in daily on-chain transactions.

“This unexpected challenge is our top priority and our technical team is working to identify and resolve the problem,” the announcement said.

At the same time, blockchain data revealed a stark decline of approximately 50% in Zilliqa’s daily transactions, plummeting to 30,906 compared to an average of 61,000 observed in recent days.

On Monday, activity on the network essentially came to a standstill, with the last recorded transaction occurring around 11 am UTC, and no new blocks have been produced since then.

Zilliqa blockchain data

Matt Dyer, Zilliqa’s CEO, reassured the community in a follow-up statement, stating that the technical team is diligently working to identify and resolve the problem. He emphasized that addressing the issue is the top priority for the team.

Network function restored

Finally, on Monday night UTC time, Zilliqa shared that the network is again operating normally.

“In due course, we’ll provide more information on the issue we encountered,” the update said.

Until the latest statement from Zilliqa that claimed the network was operational again, developers had urged all everyone to “temporarily halt any deposits or withdrawals on the network” until the issue was fully resolved.

Despite the disruption, developers have stressed that users’ funds are secure, writing “funds are SAFU.”

Zilliqa is a metaverse and scalability-focused blockchain that was founded in South East Asia in 2017.

The blockchain’s native token, ZIL, fell sharply lower as the news of the technical difficulties broke on Monday, but has since regained most of its losses.

7-day price of ZIL token.
7-day price of ZIL token. Source: CoinMarketCap