The internet nearly stopped on October 20, 2025, when Amazon Web Services (AWS) went offline for several hours and disrupted thousands of online platforms. From social networks like Snapchat and Reddit to payment apps and trading sites, large parts of the digital world became inaccessible.
The crypto sector also felt the shock as Coinbase, Base Network, and MetaMask experienced temporary service failures.
Although AWS has since restored normal operations, the event raised a serious question about how much of the so-called decentralised economy still depends on a single provider.
Why AWS Went Down
AWS operates as the foundation of the modern internet, offering computing power, databases, and storage to millions of companies. On that Monday, the company reported a major fault in its US East data centre located in Virginia.
The internal system responsible for monitoring and balancing network traffic malfunctioned, which led to a series of cascading failures.
The disruption slowed down or halted key functions such as virtual server launches and database access, cutting off many of the services that rely on AWS infrastructure.
Within hours, the effects were visible across the world. Social apps, streaming platforms, and even banking systems went dark.
Several AWS clients, including Coinbase and Robinhood, said that users could not log in or complete transactions. The outage also hit Amazon’s own services, including Prime Video and Alexa.
Coinbase’s Base App, which is still in beta testing, became one of the more visible victims. Users noticed that their account balances appeared as zero, prompting fears that their assets had vanished.
Coinbase clarified that no funds were lost. The error came from how the system displayed tokens that had not yet been traded, which momentarily registered as zero value. The company explained that this update was part of a broader effort to make portfolio data more accurate in real time.
MetaMask users faced a similar problem. Because MetaMask relies on Infura to connect to multiple blockchains, and Infura itself runs on AWS servers, the wallet could not fetch user data.
Many users saw zero balances even though their funds remained secure on the blockchain. The outage made it clear that while blockchain networks are decentralised, the tools built around them are still dependent on centralised services.
AWS engineers found the source of the problem later that day and began restoring the system region by region.
The issue was not the result of a cyberattack but rather human error within AWS’s own monitoring framework. A DNS malfunction also contributed by preventing systems from finding and connecting to AWS servers. Full recovery took several hours, with some services continuing to experience slow responses as engineers cleared data backlogs.
The company confirmed that normal operations had resumed by late evening. Still, this was not the first time AWS had caused global disruption. Earlier in April 2025, a similar event had stopped several crypto exchanges, including Binance and KuCoin, from operating for hours.
Such repeated incidents have encouraged calls for new infrastructure that is less dependent on single points of failure.
Some blockchain projects are already exploring this direction. Vanar Chain, Internet Computer, Akash Network, and Filecoin are among those working on distributed cloud systems.
These platforms aim to provide computing and data storage that do not rely on one company’s servers, ensuring that applications remain accessible even when one part of the network fails.
How the Crypto Market Reacted
The crypto market initially showed signs of concern, but it held up better than expected. Bitcoin and Ethereum both remained stable while most trading platforms struggled to reconnect.
On-chain transactions continued to process normally, proving that blockchain networks can still function independently of centralised systems.
Bitcoin briefly rose to around $110,000 before meeting selling pressure that brought it back near $108,000. This movement reflected ordinary market behaviour rather than direct panic from the outage.
Ethereum also maintained its momentum with prices near $3,966 and a trading volume of over $37 billion in 24 hours. The stability suggested that traders still trusted blockchain systems even when access points were unavailable.
Interestingly, Ethereum gas fees dropped to their lowest levels in months, falling below 0.1 gwei. With fewer users online and many decentralised applications temporarily disconnected, network congestion almost disappeared.
Those who could still access the network directly enjoyed one of the cheapest days to transact in recent history.
However, the outage exposed a critical flaw in how decentralised finance currently operates. Many platforms depend on intermediaries that connect users to the blockchain. When AWS failed, these intermediaries went offline, cutting off access for millions.
MetaMask, Infura, and even parts of Coinbase’s infrastructure could not function without AWS. While blockchains remained operational, the user experience relied on central servers.
Industry experts were quick to comment. Max Li, the founder of Oort, described the outage as a warning to build more resilient systems. He said that distributing computing across multiple nodes would reduce the risk of mass disruption.
Similarly, Anthony Anzalone of Xion highlighted that the dependence on major cloud providers shows how much of the internet still operates like a central network rather than a distributed one.
Both agreed that decentralised computing must become a priority for Web3 if it wants to achieve true independence from legacy systems.
Despite the widespread disruptions, transparency helped calm users. Blockchain explorers and on-chain verification tools confirmed that no funds had been lost or frozen. People could still view the integrity of the networks even when the platforms they used were offline.
Once AWS restored connectivity, Coinbase and other services resumed operations quickly. The company confirmed that all funds were safe and that there had been no breaches.
Within hours, trading activity recovered across exchanges. Daily volume rebounded as traders returned to the market. Yet, the event left a lasting impression on how the industry views its infrastructure.
It showed that even decentralised systems can experience real-world bottlenecks if the layers built around them rely on the same central source.
Conclusion
The AWS outage of October 2025 revealed just how fragile the digital ecosystem remains. When one company’s servers go offline, it can affect everything from airlines to crypto exchanges.
The event served as a reminder that much of the digital economy, including decentralised finance, still leans on centralised infrastructure.
For the crypto industry, it was both a warning and a validation. The core blockchains continued to operate without interruption, proving their resilience. Yet, the platforms that make them accessible to the public were paralysed, showing that full decentralisation has not yet been achieved.
As AWS services return to normal, this outage may be remembered as more than a temporary disruption.