A sudden increase in traffic leads the cryptocurrency exchange to temporarily curb movements
Cryptocurrency exchange Binance has suspended Solana network withdrawals due to an “increased volume of transactions.” According to a March 6 announcement, the company expects to find a solution and restart withdrawals on March 9.
“Withdrawals on the Solana (SOL) network have been intermittently suspended since 2024-03-04 due to the increased volume of transactions on the network. Binance has identified some areas for optimization and is working to provide a stable and long-term solution. The estimated implementation date of the solution is 2024-03-09 18:00 (UTC),” reads the announcement.
Solana has fallen 0.68% to $130.81 in the 24 hours before 10:40 AM UTC, according to info from CoinMarketCap, and is up more than 17% on the weekly chart. Binance and other well-known crypto exchanges, such as Kraken, Coinbase and Bybit, performed poorly last week.
Ivo Crnkovic-Rubsamen, chief strategy officer and technical lead for trading at the dYdX exchange, said the outages have largely been caused by rising retail interest and increasing workloads from algorithmic trading companies.
“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 20 times the output of orders and cancels at a very busy time,” he stated.
Binance announced increased trading volumes a day after Bitcoin reached an all-time high of over $69,200 on March 5. Bitcoin’s market capitalization exceeded the market cap of silver for a short time on March 5, as it temporarily became the eighth-largest asset worldwide.
