Coinbase blamed the ETH fee spike for the malfunction of its systems, thereby causing a dragged performance. It should be recalled that Ethereum was one of the digital assets that witnessed a massive surge in prices before it suffered a decline yesterday.
During the time, Coinbase said clients on their platforms were not able to make transactions due to the surge in transaction fees. The firm has clarified that its staff was monitoring transaction fees so that clients are not overcharged for transactions as a result of the ETH fee spike.
Coinbase suffers delayed withdrawal as a result of the ETH fee spike
The crypto exchange outfit said it discovered that the transaction fee on the Ethereum network was high when its staff was monitoring respective networks, which caused the delayed withdrawals from Coinbase.
The sharp movements of the token’s price led to a massive amount of transactions left unattended to which caused a delay in withdrawal, Coinbase said.
While giving their full explanation of why their clients witnessed a delay in withdrawal on their platform, Coinbase was quick to point out some facts.
The firm noted that they, along with most exchange firms, use the same algorithm to determine the fees charged for making transactions.
The firm said that while those who withdrew their assets suffered delays, those who deposited also witnessed delay, which was also caused by the ETH fee spike.
Coinbase database needs improvement despite database change
Coinbase, in another statement, said while it noted that of Ethereum, some other digital assets like Chainlink and USDC also witnessed the ETH fee spike in transactions.
This will not be the first time that Coinbase would suffer from a lagging system as a result of the volatility in the market. It was also experienced on March 12, when the market witnessed a massive crash.
As a result of that, Coinbase introduced what they called “transaction batching” to reduce the strain on the network. After that, the platform still witnessed another system lag in the months that followed the Black Thursday.
Reportedly, Coinbase suffered the lags in times that the market witnessed high volatility, which happened in April with the next one coming close in May.
After those three close events, the firm announced that they already made plans to switch to a database that would help them tackle the problem. With the recent problem as a result of the ETH fee spike, the firm still has a lot of work on their hands.