Binance Halts Solana Network Withdrawals Due to Surge in Activity

Crypto News- Binance, known as the leading cryptocurrency exchange globally, has made a temporary move to suspend withdrawals to the Solana network. The decision comes as a response to a significant surge in transaction volumes.

In an official announcement released on March 6, Binance stated its plans to address the issue and resume withdrawals by March 9. The exchange cited the escalating transaction volumes since March 4 as the reason behind the intermittent suspension.

Binance Halts Solana Network Withdrawals Due to Surge in Activity

Solana’s native token, SOL, experienced a slight dip of 0.68% within a 24-hour period, trading at $130.81 as of 10:40 am UTC, according to CoinMarketCap data. Despite this, the token has seen a remarkable surge of over 17% on the weekly chart.

The recent performance issues extend beyond Binance, affecting other major exchanges like Coinbase, Kraken, and Bybit. Ivo Crnkovic-Rubsamen, the chief strategy officer and technical lead for trading at the dYdX exchange, attributed these outages to the escalating interest from retail investors and increased activity from algorithmic trading firms.

Binance’s acknowledgment of heightened trading volumes coincides with Bitcoin’s recent milestone of surpassing $69,200, reaching a new all-time high on March 5. Bitcoin’s surge led to its market capitalization briefly exceeding that of silver, temporarily ranking it as the world’s eighth-largest asset.

Despite these challenges, Binance received recognition in the form of the Cyber Security Professional Merit Award in the banking and finance category from Hong Kong authorities. This distinction marks Binance as the sole Web3 firm to receive such an honor in 2024, underscoring its commitment to security and innovation.