Binance Temporarily Suspends Solana Withdrawals Amid Skyrocketing Transaction Volume
Summary:
Binance, the top cryptocurrency exchange, has temporarily halted withdrawals on the Solana network due to heightened transaction volume. A solution is expected to be integrated and withdrawals are planned to restart from March 9, as per an official announcement by Binance. The pause in withdrawals comes after Bitcoin recorded a new all-time high on March 5, and amidst performance issues experienced by Binance and other major crypto exchanges.
Binance, the leading global cryptocurrency exchange, has sporadically paused withdrawals on the Solana network due to the amplification in transaction turnover. As per the official Binance statement issued on March 6, measures are underway to establish a remedy and resume withdrawals from March 9.
As stated, "Since March 4, 2024, withdrawals over the Solana (SOL) network have faced sporadic interruption due to the surge in network transactions. Binance is in the process of recognising the necessary adjustments to enable a stable, long-term resolution. The anticipated launch of this solution is estimated around 18:00 (UTC) on March 9, 2024."
The Solana token, SOL, experienced a minor dip of 0.68% in value in the 24 hours leading up to 10:40 a.m., UTC, trading at $130.81 according to data from CoinMarketCap. Despite this slight decline, the coin has enjoyed a growth of over 17% on a weekly scale.
SOL/USD 7-day chart. Source: CoinMarketCap
Binance, along with prominent rivals in the industry like Coinbase, Kraken, and Bybit, had to deal with operational difficulties last week. Chief Strategy Officer and Technical Lead for Trading at the dYdX exchange, Ivo Crnkovic-Rubsamen, in an exclusive conversation with Cointelegraph, attributed these issues to mounting retail attraction, and the increasing pressures posed by algorithmic trading entities.
He remarked, "Due to significant public interest and sharp activity in price movements, algorithmic trading firms are greatly ratcheting up their transaction and cancellation rates to secure their positions. It’s common for trading firms to send orders and cancellations at a rate 20 times higher during peak hours."
The news concerning increased trading volumes on Binance surfaced a day following the recording of an all-time peak by Bitcoin, which exceeded the $69,200 mark on March 5.
Related: Bitcoin just had its best day ever — Is $100K BTC price predestined?
This is an unfolding story and more information will be provided as details emerge.
Published At
3/6/2024 1:55:45 PM
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