Coinbase Flags EOS on ‘Degraded Performance’ Twice in 3 days

The automated blockchain engine on Coinbase seems to facing network issues with EOS. Reportedly (about 00: 00 hours UTC on 22nd February), it has halted EOS sends/receive until they continue to investigate the issue.

The twitter handle of Coinbase Support notes,

The EOS network is currently experiencing degraded performance levels. EOS sends have been temporarily disabled and receives may be delayed. Buys and sells of EOS within Coinbase are functioning normally. We’ll keep you posted as service returns to normal.

A similar warning was raised on 19th February as well of ‘degraded performance.’

coinbase announcement
Coinbase Announcement on 19th February

Network Issue Reports in Abundance

A reddit user posts about the inability to transactions on EOS due to “not enough CPU power (not enough staked).” Sashat77 notes,

eos issues blockchain
Reddit User Raises Issues on EOS

It seems like possibly an attack to jam the network or worse not enough stakers/bakers, or validators going office. There are already a lot of centralization doubts around the validators/stakers being a small group of entities.

According to EOSparks data, the price of CPU and RAM on EOS has been dipping in the last 24 hours. Moreover, EOStitans’ 3 month chart shows a massive decrease in the daily staking volume on EOS.

eos staking volume
EOS Staking Volume (Source)

Furthermore, according to a recent report by Binance Research, the centralization in voting of the selection of 21 super nodes seeming to rising considerably as well. The report also cites,

Out of the original 21 block producers, only five of them are still producing blocks at all. One of the remaining BPs completely unregistered as a BP and stepped away from EOS, while the rest are in standby and not part of the top 21.

Binance Research Report on Number of Voters (Blue)

As recently reported on CoinGape, the daily active addresses on EOS has also seen a drastic fall since last year.

Price Analysis

Despite network congestion, the market on crypto exchanges operate independently. Even on Coinbase the trading is active. Nonetheless, the network issue seem to be having a negative effect on price.

The price of EOS has been in a downtrend, falling over 8% on 19th February. Currently, it is testing the bottom of the channel for support, on the 4-hour chart w.r.t BTC. A bearish cross between the 50 and 200-period EMA is also realized on Bitcoin charts.

eosbtc 4-hour chart
EOS/BTC 4 hour Chart on Coinbase (TradingView)

Do you think Block.one will be able to revive/drive the network to good performance? Please share your views with us.