Bitcoin News Update: Recent Cloud Outages Highlight Systemic Risks, Fueling DePIN Adoption

On November 18, 2025, a global Cloudflare outage took down several prominent websites and cryptocurrency platforms, sparking renewed discussions about vulnerabilities in centralized internet systems and increased interest in decentralized alternatives such as DePIN. The disruption, which stemmed from an “unexpected traffic surge” targeting one of Cloudflare’s services, led to widespread bugs affecting platforms like OpenAI’s ChatGPT, Shopify, Elon Musk’s X, and several cryptocurrency services including BitMEX and BitMEX.

Tonquin

According to reports

. The event highlighted how fragile centralized networks are, as noted by Cloudflare’s status page

Spread 500 errors

and API disturbances.

The outage’s effects extended to the cryptocurrency sector, causing block explorers like Arbiscan and DefiLlama to shut down.

As stated

. BitMEX has acknowledged service outages associated with

Cloudflare

Incident, Cloudflare (NET) stock fell 3.5% in pre-market trading

According to market data

. This followed a similar AWS outage in October 2025, which affected major blockchains such as Coinbase’s Base and Infura.

According to the analysis

. Industry experts have pointed to the risks inherent in centralized infrastructure, warning that a single point of failure can have wide-ranging consequences. Fadel Mantash, Chief Information Security Officer at

tribe

Payments stressed that “payment systems are particularly vulnerable” due to their reliance on interconnected cloud services, APIs and authentication mechanisms.

As stated in the report

.

The incident has intensified calls for DePIN (decentralized physical infrastructure networks), a concept that uses blockchain incentives to create and support physical infrastructure. DePIN proponents claim that spreading infrastructure across decentralized nodes — such as idle personal computers or community-managed networks — can help prevent single points of failure.

According to industry experts

. Nökkvi Dan Ellidason, CEO of Gaimin, a DePIN initiative focused on cloud services, commented: “We need to move to a truly distributed cloud. By leveraging globally dispersed resources, Gaimin creates a network with capacity distributed across different regions and continents, making it more difficult for a single issue to disrupt the entire system.”

As stated

Meanwhile, blockchain networks showed their strength during the outage, in stark contrast to the failures seen in Web2 services. While centralized exchanges struggled, cross-chain transactions continued uninterrupted.

Enhancing the attractiveness of blockchain

As a reliable alternative. Analysts noted that the incident could lead to short-term volatility in cryptocurrency markets

Bitcoin

(BTC) and

Ethereum

(ETH) may benefit from the growing interest in decentralized technologies

According to market analysis

. Previous trends suggest that similar outages coincided with a 2-5% increase

Bitcoin

Dominance, as investors gravitate towards existing decentralized assets

According to research

.

The event also highlighted broader infrastructure issues. Tata Consultancy Services (TCS) and its partners recently launched projects to develop sovereign cloud infrastructure in East Africa and Australia.

With the aim of addressing concerns related to data sovereignty

It has been selected by Lion to move to modern cloud infrastructure

. While these efforts aim to improve regional resilience, the Cloudflare incident highlights the global need for a more diversified approach to infrastructure. As Mantaş points out, “The vulnerability of the digital economy is now clear. When one service provider faces problems, the impacts can ripple across multiple sectors.”

Echoed a feeling

In advocating the diversification of regional and global infrastructure.