Binance Resumes Bitcoin Withdrawal After Second Suspension
On Monday, the Binance team resumed the Bitcoin withdrawal after being suspended for two hours. It was reported that on May 7, the Binance team indefinitely halted the Bitcoin withdrawal platform due to network congestion.
The unexpected suspension of withdrawal resulted in a high number of unconfirmed Bitcoin-related transactions. Reportedly, the Binance users experienced a similar challenge on Sunday after the crypto exchange suspended the Bitcoin withdrawals for roughly two hours.
Binance Resumes Operations
According to Timechaincalendar, during the suspension of Bitcoin withdrawal, over 420 000 Binance users were affected due to delays. Out of the affected users, 55 transactions were blocked.
The Timechaincalendar data correspond to the information captured on the Bitcoin memory pool. Over the past, the Bitcoin mempool platform has been utilized to capture unconfirmed Bitcoin transactions.
The Bitcoin mempool system is linked to a broadcasting network backed by complete nodes. At the receiving end, the mempool accepts all the transactions before the miners transfer them into their respective blocks.
Afterwards, the Bitcoin transaction is grouped according to gas level. A transaction with a high gas level is considered small, while those with low gas charges occupy larger space.
Notably, the transactions with high gas charges are completed before the others. As of this writing, the Bitcoin transaction fee has increased to reach a commanding rate of 245 sat/vB, which translates to $9.55 for transactions with less importance.
Later the Binance team updated on Twitter that the measures implemented to prevent the recurrence of similar scenarios, in the long run, compelled the crypto exchange to increase miner fees. The tweet revealed that the Binance team would invest in monitoring and evaluation to ensure all the on-chain platforms operate accordingly.
Binance Reveals Next Move
Besides the regular system assessment, Binance will continue improving the performance of the BTC Lightning Network, which demonstrated enormous capability in expediting Bitcoin transactions. The Binance technical team vowed to explore different ways the BTC Lightning Network will be used to address the network congestion challenges.
BTC Lightning Network enables the customers to transfer from Lightning Network to the user’s wallet directly.
Following the May 8 announcement, the Twitter community engaged in embroiled dialogues concerning the suspension of withdrawal. A review of the Twitter conversation revealed that the users attempted to examine the relationship between the ordinal-focused “theories” and the ongoing international political speculations.
From the tweets, some Binance users were more concerned about massive Bitcoin outflows. They confessed that Binance expects enormous funds transfers from cold and hot wallets.
Today, the crypto exchange transferred 117000 and 40000 BTC new accounts owned by Binance. Following this, an analyst from CryptoQuant, Julio Moreno, revealed that the existing Bitcoin outflow amounted to 101000.
Afterwards, the Binance team experienced the outflow mentioned on May 8 due to the reluctant movement of funds from hot and cold wallets. Also, a massive outflow was experienced due to changes in BTC addresses.
In addition, the Binance team warned the user from using inaccurate data provided by analysts concerning outflows. They urged the user to rely on data provided by DeFiLlama, which is error-free and reliable.
Following the Binance announcement, the price of Bitcoin established a dribbling momentum to reach $27,898.50, down by 3.65% in a day. The trading volume jumped by 20.27% to reach $15,822,800,618 at press time 13:05 UTC.It was reported that Bitcoin prices hovered below $27,691.26 over the last 24 hours.
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