Coinbase Addresses Solana Transaction Delays with Infrastructure Upgrades
Coinbase, a leading cryptocurrency exchange, has acknowledged and is actively addressing significant delays affecting Solana (SOL) deposits and withdrawals. Users have reported transaction processing times ranging from several hours to over 10 hours, prompting concerns and prompting the exchange to commit to infrastructure improvements.
Recent user reports on social media platform X (formerly Twitter) highlighted extended delays and failed transactions involving Solana on Coinbase. Both deposits from Solana wallets to Coinbase and withdrawals from Coinbase to Solana wallets have been affected. These delays sparked speculation among users, with some suggesting a potential conflict of interest due to Coinbase's involvement with the Ethereum Layer-2 network, Base, a competitor to Solana. Others called for a proof of reserves for Coinbase's Solana holdings.
While some initially attributed the delays to network congestion on the Solana blockchain due to increased activity surrounding new memecoins, other exchanges reported significantly faster transaction processing times. This suggested the issue was specific to Coinbase's handling of Solana transactions, with reports indicating the problem has persisted for several weeks. Normally, Solana transactions are known for their near-instantaneous completion.
Coinbase CEO Brian Armstrong acknowledged the issue, stating the exchange is “working hard” to scale its infrastructure to accommodate the increased activity. Mert Mumtaz, CEO of Solana infrastructure developer Helius, clarified that the delays were not due to issues with the Solana blockchain itself, offering assistance to Coinbase. Coinbase Senior Protocol Specialist Andrew Allen confirmed that the high Solana usage had “pushed our infra past its limits” and that the team is actively working on resolving the issue. Coinbase support reassured users that “your funds are safe and secure” and that all customer assets are held 1:1.
Coinbase explained that it experienced “unprecedented” Solana transaction volume, exceeding normal operations by more than tenfold. This surge overwhelmed its systems' ability to validate and process transactions efficiently. While the exchange reported a 30% improvement in processing times since the previous day, it cautioned that outgoing transactions may still take up to 24 hours and incoming transactions approximately six hours.
Coinbase aims to reduce these delays in the coming days and is collaborating with the Solana Foundation on longer-term infrastructure upgrades to provide a more reliable and faster experience. The exchange has historically faced challenges during periods of peak demand, often experiencing outages or maintenance. This recent incident, however, appears specifically related to Solana transactions. Coinbase has not yet provided a specific timeline for full resolution.