Key Highlights
- Kraken’s Ink Layer 2 blockchain reported chain-wide outages and intermittent network availability.
- Transactions and cross-chain bridging services have been impacted, with users experiencing delays and failures.
- Ink plans to publish a full post-mortem after restoring network stability and completing its investigation.
Kraken’s Ethereum Layer 2 blockchain, Ink, is currently experiencing widespread technical difficulties, with reports of unreliable network performance across the chain.
In an official update posted on X on Tuesday, the Ink team acknowledged “chain-wide outages with intermittent network availability,” stating that the network “is not yet stable.” The team attributed the issues to problems with its infrastructure partner, Gelato, and said it is actively investigating the root cause.
The Crypto Times team has reached out to Kraken for a statement on the outage and is yet to receive a response.
Full post-mortem to be released post-resolution
Transactions and bridging activities have been particularly affected, with users advised to expect delays and potential failures until stability is restored. A full post-mortem is promised once the incident is resolved.
Ink, built on Optimism’s OP Stack and part of the Optimism Superchain, launched with backing from the major cryptocurrency exchange Kraken. Positioned as a network focused on DeFi and on-chain wealth management, it has previously shown strong growth in total value locked, surpassing $500 million at the beginning of this year, according to DeFiLlama.
However, like many newer Layer 2 solutions, it has faced the challenge of maintaining consistent performance and user activity as it scales. At the time of writing, there was no confirmed timeline for full restoration. The Ink team urged users to monitor their official account for updates.
Outages can erode user confidence
Outages on blockchain networks, while not uncommon, especially in early or rapidly growing phases, can erode user confidence. Bridging assets between chains is a particularly sensitive operation; any disruption raises concerns about stuck funds and liquidity fragmentation.
Community reactions on X ranged from expressions of support and calls for patience to frustration over delayed transactions, with some users reporting slow or pending withdrawals.
The reliance on third-party infrastructure providers such as Gelato highlights a common reality in the blockchain space that even networks backed by large exchanges are not immune to external dependencies that can introduce single points of failure. Gelato provides automation and relayer services used by various chains for transaction execution and bridging.
Sui recently experienced multiple outages
A similar incident recently affected the Layer 1 blockchain Sui, which went down around three times in less than 48 hours on May 29, temporarily halting transactions.
The Sui team later identified the root cause as an issue during the rollout of a recent long-term fix. The network subsequently informed that it is now fully operational with transactions processing normally. However, a detailed post-mortem is still expected.
Kraken’s primary service remains unaffected
Kraken has not issued a separate statement on its main exchange platform regarding the Ink outage, and its primary trading services appear unaffected. The disruption remains confined to the Ink blockchain, but it highlights the operational challenges that can emerge as crypto companies expand deeper into blockchain infrastructure.
For users with assets on the network, the situation underscores the importance of monitoring bridge confirmations and avoiding time-sensitive transactions during periods of reported instability.
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