Binance, one of the world's largest cryptocurrency exchanges, has halted Bitcoin withdrawals twice in 12 hours due to a high volume of pending transactions.
The exchange temporarily closed BTC withdrawals on May 8, citing a backlog of pending withdrawals and stating that its set fees did not anticipate the recent surge in Bitcoin network gas fees.
After almost two hours, Binance provided an update and announced that it was replacing the pending Bitcoin withdrawal transactions with higher fees so that mining pools could pick them up. The exchange resumed Bitcoin withdrawals nearly three hours after the initial tweet, processing pending transactions with higher transaction fees.
This recent development follows Binance's temporary suspension of Bitcoin withdrawals on May 7, where it claimed there was an overflow of transactions on the blockchain. Binance saw significant Bitcoin net negative outflows on May 7, with roughly 175,650 BTC worth around $4.95 billion flowing from the exchange, according to data from CryptoQuant. However, Binance claimed that the outflow data moved Bitcoin between its hot and cold wallets.
The price of Bitcoin fell approximately 2.5% from its weekly high of over $29,700 on May 6, according to Cointelegraph data.
This recent development highlights cryptocurrencies' ongoing issues, particularly regarding transaction volumes and network fees.
Binance is reportedly working on enabling withdrawals via the Lightning Network, which it claims could help mitigate such withdrawal halts.
As the cryptocurrency market continues to evolve, how exchanges and investors will adapt to these challenges remains to be seen.
So follow the account of Binance to keep an eye on what is happening with Bitcoin and Cryptocurrencies.
What are your thoughts on crypto and the future about it?