Binance stopped withdrawing from Solana due to ‘increase’
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Crypto exchange has Binance Due to the “increase in the volume of transactions”, the Solana network has been continuously interrupted, prompting the exchange to find ways to optimize the system and control transactions.
This ban began on March 4th, and will continue until at least March 9th, or until Binance comes up with a solution to handle the sudden surge in transactions. According to data from CoinGecko, Binance accounts for 24% of the SOL transaction volume, which is estimated at $2.4 billion per day.
Despite the temporary ban, Solana native SOL token has dropped 3.8% in the last 24 hours and is now trading at $127. The token has gained 14.5% in the past week.
Binance isn't alone in struggling with performance bottlenecks amid heightened cryptocurrency trading activity. Like major exchanges Kraken and Bybit reported that they were discontinued last week for a variety of reasons: growing retail interest combined with orders from algorithmic trading firms looking to protect their retail positions.
In particular, the outage and technical issues with Coinbase occurred at a time when Bitcoin was more popular. . During that time, bitcoin's market capitalization temporarily surpassed that of silver to become the world's eighth largest asset class.
This phenomenon is typically associated with an increase in retail interest, as the rate of price action of a particular cryptocurrency increases and exchanges such as Binance may not be ready to accommodate an unexpected volume of transactions.
Despite the performance issues, Binance has recently been recognized for its cybersecurity efforts. In the year In 2024, it received the Cyber Security Professional Award in Banking and Finance from the Hong Kong authorities—the only Web3 company to receive such an award.
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