Coinbase Under Fire for Solana Delays as Network Activity Surges

Coinbase, the $74 billion crypto exchange, is under fire from Solana users.

The platform that claims to be all about accessibility and speed in crypto transactions is facing complaints about Solana (SOL) deposits being delayed. Solana is known for fast and cheap transactions, but Solana users are taking to X (formerly Twitter) to vent about 24 hour+ deposit delays. Mike Dudas, co-founder of crypto media outlet The Block, called it a persistent problem that questions Coinbase’s infrastructure.

Recurring Technical Glitches Erode Confidence

This isn’t the first time Coinbase has had technical issues. In February 2024, when Bitcoin hit $64,000, Coinbase had a major outage. Users reported their account balances were zero, transactions were disabled due to traffic overwhelming the platform. In March 2024, Solana’s price surge caused similar problems. Users had SOL deposits canceled or delayed, and Coinbase said it would use machine learning to anticipate traffic surges and scale its systems. But so far, it seems like nothing has changed.

Andrew Allen, a Coinbase protocol expert, confirmed on X that the current Solana delays are on the exchange’s side, not Solana’s blockchain. Coinbase Support said “unprecedented Solana transaction activity” was causing the delays, but improvements have reduced delays by 30% in the last 24 hours.

Impact on Coinbase’s Credibility

Solana is the #1 blockchain by active addresses, according to DeFiLlama. Coinbase can’t handle the transaction surge. For a platform that wants to be “an open financial system for the world”, frequent technical issues is hurting its brand.

Key issues reported include:

• High fees: Users often cite Coinbase’s fees as among the highest in the industry.

• Delayed transactions: Despite advancements in blockchain technology, users face long wait times for basic services.

• Infrastructure concerns: Repeated system crashes during activity spikes highlight scalability issues.

Coinbase is adding more features and says it’s improving its systems, but these recurring issues call into question its ability to deliver during high traffic times. For many users, the promise of seamless and instant transactions is still unfulfilled, especially when compared to competitors handling similar volume.

Solana goes up, Coinbase needs to fix this. Otherwise, the open financial system is a pipe dream for many.