The MultiversX Mainnet issue is under investigation following the detection of a problem on the blockchain by the team. MultiversX notes that user security is their top priority as their team investigates the network.
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What Happened on the MultiversX Network?
MultiversX announced the investigation in a post on X on September 19. According to the announcement, the team was examining a problem with the live network and gave an additional update following their review.
MultiversX did not refer to the incident as an exploit, outage, failure of consensus, or validators. The incident also involved no theft of funds, compromised wallets, or financial losses in the initial disclosure.
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Thus, the problem with the MultiversX mainnet is still being investigated. The information from the disclosure process can only confirm the project’s claim regarding a possible network problem without disclosing any technical reason behind the issue yet.
MultiversX did not ask users to halt transactions, withdraw funds, or switch wallets in its initial disclosure. This lack of recommendations does not confirm that there are no effects on any of the services, but it confirms that no emergency actions were advised.
Who Could Be Affected by the Investigation?
The MultiversX blockchain is a layer-1 blockchain, which means that the mainnet performs transactions and smart contracts. The native token of the blockchain is EGLD and is utilized for paying transaction fees, staking, and governance.
An identified fault would impact users depending on the location of the problem. Issues at the wallet interface will be entirely different from faults relating to block generation, consensus, bridges, or apps using the blockchain.
The MultiversX mainnet issue has not been categorized under any of the above. The company has not yet indicated whether transaction settlement, finality, staking, or validator operations are impacted.
The difference will matter for token holders. Tokens may still be reflected on-chain despite problems with the wallet interface, whereas an issue with block generation will impact transaction processing.
Trading on a centralized exchange is distinct from native chain transfer. The exchange can continue matching orders internally, adjusting deposits and withdrawals depending on network instability.
So far, MultiversX has not reported any exchange suspending EGLD deposits or withdrawals due to the review. It has also not mentioned any country restrictions or measures for self-custody users.
When Will MultiversX Provide Another Update?
The project said that another update was expected within 12 hours of the first publication. At the same time, the team added that it could issue an update sooner if the investigation brought a definite conclusion.
The next official update is the only source of new technical details. Until that point, the MultiversX mainnet issue should not be considered an exploit, outage, or security breach.
The first update was posted around 10:00 a.m. UTC on September 19. According to MultiversX, their team was working hard to ensure that the network operates safely and reliably until the investigation ends.
No technical analysis was provided in this post. The team did not mention the possible root cause, affected component, type of transactions, wallet provider, validator group, or application related to the problem. The MultiversX mainnet problem is still technically unidentified.
Where Does the Issue Sit in the Network?
MultiversX utilizes the proof-of-stake mechanism and a sharded system architecture. The structure distributes transaction validation through various segments of the blockchain, where validators ensure security while EGLD token owners can stake their tokens.
However, neither the project nor the notice mentions the place of the MultiversX mainnet issue in the given architecture. The investigation was not associated with block production, validator communications, smart contracts, wallet software, bridges, or external services by the project.
The investigation follows the launch of Supernova on September 15. According to MultiversX, Supernova infrastructure aims to assist businesses, brands, and machines in accessing and transferring money.
The launch of Supernova has not been associated with the current investigation. The first notice does not give any ground for assuming the connection between the launch of Supernova and the network problem.
MultiversX has extended access via third-party wallet integrations. SafePal integrated the network via its hardware and mobile wallets in July 2024, with a browser extension also planned.
At that moment, SafePal claimed more than 13 million users in more than 200 countries, working with over 100 blockchains. Integration provided users with another method of access to EGLD using the MultiversX mainnet for settlement.
Why the MultiversX Mainnet Issue Matters for EGLD
The investigation comes as EGLD has faced weaker weekly price performance and heavier trading activity. According to CoinMarketCap data as of September 20, EGLD is trading at around $3.95, which is a decline of approximately 9.7% over the past week.
The market capitalization of EGLD amounts to $121.86 million, with a fully diluted valuation at around $121.88 million.
The daily trading volume reached nearly $72.09 million, reflecting an 880% growth compared to the previous period according to CoinMarketCap.
High volume may be an indicator of increased trading activity, reallocation, or volatility. No causal relationship between the MultiversX mainnet issue and high volume has been identified by the market data, and there is no evidence of such a connection.
EGLD holders may experience price fluctuations without having to perform any action, such as an on-chain transaction. Stakers rely on validators’ performance and the service utilized for delegating coins, while MultiversX has not announced any problems with staking.
The MultiversX mainnet issue is still the key development for users who wait for technical information. The next announcement from the team will reveal whether the event had any influence on the network or occurred within a more limited scope.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
