Binance Temporarily Halts Solana Network Withdrawals Due to Surge in Volume
Binance, the world’s largest cryptocurrency exchange, has intermittently suspended withdrawals from the Solana network due to a surge in transaction volumes. According to an announcement by Binance on March 6, the exchange expects to implement a solution and resume withdrawals by March 9.
Withdrawals on the Solana (SOL) network have been intermittently suspended since early 2024 due to increased transaction volumes on the network. Binance has identified areas for optimization and is working on a long-term, sustainable solution. According to CoinMarketCap data, the Solana token also decreased by 0.68% to $130.81 in the 24 hours leading up to 10:40 AM UTC. The token has increased by more than 17% on the weekly chart. Binance and other prominent digital currency exchanges like Coinbase, Kraken, and Bybit faced operational issues last week. Ivo Krkačovič Robsam, the Chief Strategy Officer and Chief Technical Officer of Trading at the dYdX exchange, mentioned in an exclusive interview with Coin Telegraph that these outages are mainly due to increased retail interest, accompanied by growing workloads from algorithmic trading companies. As retail interest is very high and price action moves very quickly, all algorithmic trading companies significantly increase the rate of orders and cancellations they want to send to the matching engine to maintain their positions. A trading company gives up to 20 times the return on orders and cancellations during very busy times.
Binance’s announcement about increased trading volumes came one day after Bitcoin reached a new all-time high of over $69,200 on March 5. Bitcoin’s market value briefly surpassed the market cap of silver on March 5, temporarily making Bitcoin the world’s eighth-largest asset. Despite recent operational issues, Binance received the Professional Security Cybersecurity Excellence Award in the Banking and Finance category on March 6, becoming the only Web3 company to receive such an award from Hong Kong authorities in 2024.
