Bitcoin News Today: Base Suffers First Major Outage in Two Years Amid Altcoin Surge

A rare network outage disrupted Base, Coinbase’s Ethereum Layer-2 scaling network, on July 23, 2025, marking the first such incident in over two years. The platform experienced a 29-minute disruption at 09:15, during which core functions such as block production, deposits, withdrawals, and flashblock operations were suspended due to a technical malfunction referred to as “unsafe head delay” [1]. The team responded swiftly, identifying and resolving the issue just one minute after initiating their response at 09:43. Upon restoration, the team activated a monitoring mechanism to address any potential recurring problems [1].

Despite the brevity of the outage, the incident drew significant attention given Base’s history of uninterrupted service and its increasing significance in the Ethereum Layer-2 ecosystem. As of the event, the network reported $4.2 billion in total value locked (TVL), with $1.5 billion attributed to its lending protocol, Morpho [1]. The disruption occurred during a period of heightened interest in altcoins, with several projects attracting investor attention as alternatives to Bitcoin. Analysts speculated that the outage could test the community’s confidence in altcoin platforms at a critical juncture [2].

The incident also coincided with a broader trend of altcoin gains amid Bitcoin’s recent price corrections. Altcoins such as XRP had shown signs of rising traction, with some market participants suggesting they could capitalize on Bitcoin’s volatility. However, the outage underscored the operational risks inherent in altcoin platforms that lack the infrastructure of more established cryptocurrencies [3]. The team’s statement did not elaborate on the malfunction or outline specific measures to prevent future disruptions, sparking calls for greater transparency and communication from the team [1].

Investor sentiment toward the incident remains divided. Some view it as a temporary technical hiccup, while others fear it could expose deeper systemic vulnerabilities. As altcoins gain prominence, the ability of these platforms to maintain consistent performance and security will play a key role in sustaining investor trust [4]. The event serves as a timely reminder of the challenges facing the altcoin ecosystem as it seeks to mature beyond its early-stage limitations.

Source: [1] Surprise Altcoin Network Outage for the First Time in Years: Statement from the Team (https://en.bitcoinsistemi.com/surprise-altcoin-network-outage-for-the-first-time-in-years-statement-from-the-team/)

[2] XRP Above $3: Altcoin Rally or Fluke? Investors Are Hyped (https://www.mitrade.com/insights/news/live-news/article-3-1010039-20250804)

[3] An Alt Season on the Horizon? (https://assets.ctfassets.net/m1hizt3hapq0/3FL4eVEclIf2FYfGjLh7Nb/beff70e4390aabcebc9c19e5c29f13d2/An_Alt_Season_on_the_Horizon)

[4] 3 Predictions for the Next Crypto Bubble (https://www.mitrade.com/au/insights/news/live-news/article-8-1008713-20250804)