Coinbase fell as much as 6% on Tuesday amid an ongoing service outage that led to crypto transactions being delayed or canceled.
The outage, according to Coinbase, was caused by “a sudden increase in network traffic and market activity” that led to a “degradation in our services.” As of 1:05 pm, Coinbase was still experiencing service issues and said funds settlement would be delayed as the company recovered, according to a tweet from Coinbase Support.
“We’re aware transactions are currently delayed or cancelled at elevated rates and our apps may be experiencing errors. Our team is investigating the issue and we’ll update hear as soon as we know more,” Coinbase tweeted.
The increase in network traffic to Coinbase was likely due in part to a surge in downside volatility for bitcoin, ether, and other popular altcoins on Tuesday.
Bitcoin swiftly fell as much as 17% on Tuesday, the same day El Salvador adopted the cryptocurrency as legal tender. Ether also dropped as much as 25%, while cardano, dogecoin, and litecoin staged steep sell-offs as well.
Coinbase said in a tweet at 1:40 pm that it resolved the issues related to its service outages. The stock had pared its Tuesday losses to about 4% at time of publication.