Multichain sees significant token drop amid ongoing transaction delays
The decentralized cross-chain protocol Multichain is grappling with severe transaction delays, causing its native token, MULTI, to plummet 29.4%, even as the team works on a resolution and reassures users of the safety of their funds.
In recent developments, the native token for the cross-chain bridge Multichain, also known as MULTI, experienced a sharp drop of 29.4% today, down to a trading value of $5.02 as per data from CoinGecko.
This sudden downfall came in the wake of reports by users experiencing stuck transactions, which sparked concerns in the community.
Multichain, formerly recognized as Anyswap, operates as a decentralized cross-chain protocol, facilitating the exchange of diverse cryptocurrencies across various blockchain networks.
This is made possible through the utilization of smart contracts and decentralized liquidity pools, allowing networks like Ethereum, Binance Smart Chain, and Polygon to interact with each other.
The origin of the issue can be traced back to Sunday when the Multichain community on Telegram was inundated with grievances from users regarding pending transactions. A community member reported that their transfer from Arbitrum to zkSync was caught in a prolonged confirmation process.
In response to the community’s concerns, Multichain community manager, David Who, addressed the issue on Telegram, stating, “the bridging service on one of our routers was not well functional.” In Multichain’s framework, a router plays a crucial role in directing the asset transfer path based on liquidity pools.
The team has acknowledged that one of the “routers” on the bridge was impacted. They are in the process of upgrading the RPC-backend node to rectify the issue.
It’s important to note that an RPC node serves as the conduit between the ethereum network and web2, offering a suite of APIs that enable clients to interact with the ethereum network.
Pools affected by the issue hold approximately 3,975 ETH, equivalent to about $7 million in zkSync, and over $322,000 in USDC, according to details shared via Telegram.
zkSync and polygon zkEVM, ethereum layer-2 solutions leveraging zero-knowledge proof technology, appear to be predominantly affected. These blockchains, launched in March 2023, are still in their infancy.
In his latest message, Who reassured users that their funds remain safe and that pending transactions will “pass through automatically and instantly” once the problem is resolved.
Meanwhile, the community was alerted about the temporary suspension of some bridges causing the pending transactions on May 22.