Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Binance, the largest cryptocurrency exchange globally, has temporarily halted withdrawals to the Solana network due to an “increased volume of transactions.”
As per a Binance announcement made on March 6, the exchange anticipates implementing a solution and resuming withdrawals starting March 9.
Binance Temporarily Suspends Solana (SOL) Withdrawals
The press release dated March 6 stated that,
“Withdrawals on the Solana (SOL) network have been intermittently suspended since 2024-03-04 due to the increased volume of transactions on the network.”
The exchange noted that it has pinpointed “some areas for optimization” and is actively working to resolve the issue, with a planned implementation of a “long-term solution” on March 9 at 18:00 (UTC).
Solana’s status page revealed that the last instance of network difficulties occurred on February 6, during a five-hour outage. However, Solana has not issued any public comments regarding network stability in light of Binance’s decision to suspend withdrawals. It remains uncertain whether Binance’s action is directly connected to the network’s stability.
In conjunction with Binance’s announcement, Solana’s SOL token saw a spike in daily trading volume, reaching $9.5 billion, reminiscent of levels last observed in September 2021 when SOL was priced at $209.
At the same time, Solana’s native SOL token experienced a minor decline of 3.8% in the 24 hours leading up to 10:40 am UTC, trading at $127.81. Nevertheless, the token recorded a notable increase of over 14.5% on the weekly chart at the time of this report.
Related Posts
Binance and Other Exchanges Face Performance Challenges Amid Rising Crypto Trading Activity
Binance’s notification of heightened trading volumes follows shortly after Bitcoin achieved a new all-time high exceeding $69,200 on March 5. Furthermore, Bitcoin briefly surpassed the market capitalization of silver, becoming the eighth-largest asset globally.
Binance is not the sole exchange encountering performance challenges amid the surge in cryptocurrency trading activity. Last week, prominent exchanges such as Coinbase, Kraken, and Bybit also experienced performance issues.
Earlier this week, Coinbase users reported irregularities, with some encountering problems such as a displayed $0 account balance. However, Coinbase reassured users of ongoing enhancements in customer trading, although some may still face errors in login, sending, receiving, and payment methods due to increased traffic.
Ivo Crnkovic-Rubsamen, the chief strategy officer and technical lead for trading at the dYdX exchange, attributed the rise to a surge in retail interest coupled with growing workloads from algorithmic trading firms.
He elaborated that the rapid price fluctuations prompted trading firms to significantly escalate the rate of order placements and cancellations, resulting in increased demand on the exchanges’ matching engines.
He stated,
“Because there’s so much retail interest and the price action is moving so fast, all of the algorithmic trading firms are vastly increasing the rate of order placements and cancels they want to send to the matching engine to maintain their positions […] It’s common for a trading firm to cancel 20 times the output of orders at a hectic time.”
Despite the recent performance challenges, Binance was awarded the Cyber Security Professional Merit Award in the banking and finance category by Hong Kong authorities in 2024, making it the only Web3 firm to receive such recognition.
The post Binance Suspends Solana Withdrawals Amid High Transaction Volume appeared first on Cryptonews.
