On May 7, the Binance cryptocurrency exchange temporarily suspended the withdrawal of bitcoin due to network congestion.
$BTC withdrawals are now resumed on #Binance.
Thank you for your patience and we apologize for any inconvenience.
— Binance (@binance) May 7, 2023
The function was launched after an hour and a half, but on the night of May 8, the platform again suspended the withdrawal of the first cryptocurrency due to “a large volume of pending transactions.”
We’ve temporarily closed #BTC withdrawals due to the large volume of pending transactions.
Our team is currently working on a fix and will reopen $BTC withdrawals as soon as possible.
Rest assured, funds are SAFU.
— Binance (@binance) May 8, 2023
Representatives of the company said that in order to resume work for the second time, they had to increase the commission for all pending withdrawal requests.
“To prevent this from happening in the future, our rates have been adjusted. We will continue to monitor network activity and make adjustments as necessary. Our team is also working on enabling Bitcoin withdrawal via Lightning Network, which will help in such situations,” explained Binance.
A few hours later, the exchange resumed the withdrawal of the first cryptocurrency, stating that all pending transfers were completed.
According to mempool.spaceat the time of writing, the number of unconfirmed transactions in the Bitcoin network is 422,729. The average transfer fee ranges from $8.9 to $9.7.
On May 1, the daily number of transactions in the Bitcoin network reached ATH at 685,711 amid a surge in activity related to the Bitcoin NFT Ordinals. The excitement around the project significantly affects various on-chain metrics of the first cryptocurrency, including the size of commissions.
According to CryptoQuant, since May 7, Binance has seen a significant outflow of bitcoin. During the day, users withdrew about 195,438 BTC (~$5.62 billion) from the exchange.
At the end of 2022, Binance suspended withdrawals for a number of assets and restricted the accounts of some users due to “anomalous price movements in certain trading pairs.” Then the list included SUN, ARDR, OSMO, FUN and GLM.
Previously, the platform had to temporarily block the function of making deposits in USDT and USDC stablecoins issued on the Solana network.
Recall that in March 2023, the Binance cryptocurrency exchange announced the suspension of spot trading due to a “strange” error in the trailing stop order mechanism.
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