Coinbase is seeing intense congestion on the Solana network, causing deposit and transfer delay.
Leading crypto exchange Coinbase Global Inc (NASDAQ: COIN) faces increasing user scrutiny due to significant delays in processing Solana (SOL) transactions. These delays have frustrated many users, with some reporting wait times of up to 15 hours for withdrawals and deposits.
The issue, according to The Block, has been ongoing for a while. It has raised concerns about Coinbase’s ability to handle Solana’s increased activity. Additionally, the rise of Coinbase’s Ethereum-based Layer 2 network, Base, has fueled questions about the exchange’s priorities.
The Growing Problem: Hours-Long Delays
Users have reported significant delays in Solana transactions on the Coinbase platform per multiple X posts. Both withdrawals and deposits have been affected, with some users experiencing long processing times.
Meanwhile, others have faced complete failures when processing their Solana transactions. These issues have raised concerns about the platform’s efficiency. Mike Dudas, a managing partner at 6th Man Ventures, recounted his experience.
He revealed that two transactions from his Solana wallet to Coinbase took a long time. As of now, the second transaction is still pending. Notably, in a market where quick transactions are vital, this is a significant problem.
Coinbase’s slow transaction times have sparked much speculation about the cause. Some said the long processing transactions were due to Solana’s network being congested due to the recent all-time-high trading volume.
As reported by Coinspeaker, this trading rush was fueled by the newly launched TRUMP and MELANIA memecoin on the Solana blockchain. Nevertheless, the network usually processes transactions quickly, raking in a daily net inflow of $12 million in late December.
Solana sets back to back DEX volume all time highs with $28.2B yesterday and $39.2B today
Today we saw
– $12B on Trump Family Tokens ™️
– $12.9B SOL-USD
– $1.5B in stablecoin swaps pic.twitter.com/CgVHuTJeqg— Dan Smith (@smyyguy) January 20, 2025
Meanwhile, many users note that other exchanges handle Solana transactions more efficiently. This makes the delays even more surprising. Users are questioning Coinbase’s ability to handle the traffic.
This has led to concerns about the exchange’s internal systems. Additionally, some users are concerned that Coinbase’s connection to its Ethereum Layer 2 network, Base, may affect how it handles Solana.
However, this theory remains unproven. Others have demanded transparency, urging Coinbase to release proof of reserves for its Solana holdings amid the ongoing delays. Mert Mumtaz, CEO of Solana infrastructure developer Helius, weighed in on the issue.
He suggested that the exchange’s delays have more to do with its infrastructure than with Solana.
Coinbase is Working to Scale its System
In response to the backlash, Coinbase CEO Brian Armstrong acknowledged the issue and apologized for the inconvenience. He confirmed that the company is working hard to scale up its infrastructure to keep up with the recent surge in Solana transactions.
Andrew Allen, a senior protocol specialist at Coinbase, agreed, noting that Solana’s increased usage had strained the platform’s infrastructure.
In an X post, the exchange assured its users that their funds are safe, stating that all funds are held 1.1. This means that Coinbase has not run out of Solana.
We’re aware of delays with Solana sends and receives on Coinbase. Your funds are safe and secure. At Coinbase all customer assets are held 1:1, we have not run out of Solana. Transparency is key, and we want to share what’s happening and how we’re working to fix it. 🛠️
— Coinbase Support (@CoinbaseSupport) January 21, 2025
The exchange mentioned working with the Solana Foundation on infrastructure upgrades for better service. While the delay has improved, outgoing transactions may take 24 hours, with inbound transfers delayed by six.
This is not the first time withdrawals and deposit transactions have been delayed on the Coinbase platform. However, this issue with Solana transactions stands out, and Coinbase has not given a clear timeline for a fix.
For now, users can only wait and hope the planned improvements lead to a smoother experience soon.
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