Amazon Outage Shakes The Internet: Will Crypto Prevail as Web3 Remains Resilient?
A solitary error in Amazon’s cloud computing service sent ripples throughout the internet, reigniting discussions on whether decentralized Web3 frameworks might perform better under such circumstances.
On Monday, Amazon Web Services (AWS) experienced a significant disruption, causing a multitude of applications and websites worldwide to go offline.
The outage impacted various services including Reddit, Roblox, and Coinbase, along with several governmental and banking services in the UK.
As per Amazon’s service report, the issue originated in the US-East-1 region of AWS located in Northern Virginia, related to a Domain Name System (DNS) complication affecting DynamoDB endpoints.
AWS stated that engineers resolved the primary issue early Monday morning Pacific time but persisted in addressing residual errors.
What Triggered the Amazon Web Services Outage in the US-East-1 Region?
Referencing a report from Reuters, the magnitude of the outage highlighted how reliant the internet has become on a handful of cloud service providers.
Social media sites, gaming platforms, payment services, and media outlets were all disrupted, with extensive downtime reported throughout the day.
Reddit, Roblox, Signal, Venmo, among others, gradually resumed operations as AWS reinstated its services.
In the crypto asset sector, platforms utilizing cloud infrastructure faced challenges.
Coinbase announced that essential functions experienced disruptions during the outage but were subsequently restored. The firm also verified that some transactions were delayed while assuring users that their assets remained secure.
Conversely, major blockchain networks operated without interruption.
AWS, known as Amazon Web Services, powers half of the world’s services, including cryptocurrencies like ETH, POL, ARB, and BASE. do you know who was completely unaffected? Yes, Litecoin, with over 14 years of zero downtime. pic.twitter.com/Baz4nTZT0G
— WarrenŁee
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Amazon’s investigation pinpointed the issue to DNS troubles affecting DynamoDB API endpoints within the us-east-1 region.
This glitch also prevented new EC2 instances from being initiated, prolonging recovery for many customers. Given that this region is responsible for a significant portion of global cloud traffic, the impact was extensive.
This situation has reignited concerns regarding the overdependence on major cloud providers.
Regulatory authorities and infrastructure specialists have cautioned that outages from a select few hyperscalers could potentially destabilize entire economies.
In the UK, this incident has added momentum to calls for recognizing major cloud providers as “critical third parties” that require more stringent oversight.
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How Did Amazon and BTC Respond Following the AWS Outage?
During late trading hours, both Amazon and Coinbase saw slight increases, whereas BTC remained around the $110,700 mark.
As per a stock trader’s update on X, Amazon’s daily chart appears to be completing a correction near the 0.382 Fibonacci level at $207.66, with prices hovering around $216 and base level found at $211.
Barrier level is forecasted at $224.50, followed by $227 and $236. A rebound from this zone could potentially initiate wave (v) in the Elliott Wave analysis, provided that the price sustains above the retracement area.
Momentum appears neutral yet stabilizing, indicating that buyers may be attempting to reassert their influence prior to earnings reports.
Crypto Tony, a well-known cryptocurrency analyst, provided a BTC price update on X. BTC reached the $110,600 resistance level following a recovery from $108,000.
On the 4-hour chart, a downward trendline continues to limit rallies and has faced multiple tests.
In the absence of a definitive break above the $111K–$112K range, Bitcoin is likely to oscillate between $100K and $110K.
The pattern indicates lower highs, with potential retests of the $102K–$104K area if rejected.
A sustained move over $110,600 would bring the overall bullish back into focus, contrasting with Amazon’s ongoing corrective phase after the outage update.
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The article Amazon Outage Rocks The Internet: Can Crypto Rise Above as Web3 Remains Resilient? first appeared on 99Bitcoins.
