Binance, the world’s largest crypto exchange, has suspended withdrawals on the Solana network due to increased volumes amid the market run.
The recent market uptrend has triggered a surge in demand, attracting a pool of investors and more market participants. Amid this pattern, exchanges with a larger user base have begun experiencing issues, the latest being Binance.
Binance Suspends Solana Withdrawals
Binance recently announced that they have suspended withdrawals on the Solana network, citing a massive surge in transaction volume. The crypto exchange had investigated the cause of a rising incidence of withdrawal challenges among users.
According to the Binance team, they have now completed their investigation and are looking to implement a working solution to the withdrawal issues. However, to ensure stability, the exchange revealed that it had suspended all withdrawals through the Solana network.
This suspension is temporary, and would only last until the maintenance is complete and a viable solution is implemented. Notably, the exchange expects to implement such a solution by March 9, three days from now.
It bears mentioning that the suspension does not particularly impact Solana (SOL) as a token, but the Solana network itself. As a result, market participants cannot withdraw any assets, whether SOL or USDT, through the Solana blockchain.
An investigation carried out by The Crypto Basic confirms that the exchange has indeed suspended withdrawals through the Solana network. Notably, the issue does not impact all Solana functionalities in general, as data indicates that the network is still operational, with Feb. 6 being the day of the last downtime.
A History of Suspensions
The recent development would not mark the first time Binance is suspending Solana withdrawals. In January 2022, the exchange revealed that it would occasionally pause withdrawals on the Solana network due to a congestion in the blockchain to clear withdrawal backlogs.
Moreover, in April 2022, Binance also announced a suspension of withdrawals through the Solana network. The crypto exchange cited a massive increase in withdrawal volume, with most of the transactions featuring empty transaction IDs. Binance also stopped Solana withdrawals in June 2022.
The latest surge in transaction volume could be attributed to an increase in network activity due to the market run. Coinbase previously experienced general issues related to user balances due to the influx. Notably, SOL has surged 553% since last September, currently trading for $129.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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