Binance temporarily suspends Solana withdrawals due to transaction surge. Despite the suspension, Solana's SOL token only dips 3.8%.
Leading cryptocurrency exchange Binance has declared a temporary halt on withdrawals via the Solana network due to a surge in transaction volumes. This interruption commenced on March 4 and is expected to persist until at least March 9, pending the implementation of measures to manage the influx of transactions.
As per data sourced from CoinGecko, Binance accounts for approximately 24% of the total SOL transaction volume, amounting to an estimated daily turnover of $2.4 billion.
Despite the suspension, Solana's native token SOL experienced a marginal decline of only 3.8% over the past 24 hours, currently priced at $127. Notably, the token has witnessed a commendable 14.5% surge in value over the preceding week.
Binance is not the sole platform contending with performance constraints amidst heightened cryptocurrency trading activity. Major exchanges such as Coinbase, Kraken, and Bybit encountered service disruptions last week, attributed to a combination of factors including escalating retail interest and a surge in orders from algorithmic trading entities aiming to manage their positions.
Noteworthy among these disruptions were the technical glitches faced by Coinbase, coinciding with Bitcoin's ascent beyond the $67,000 mark. During this period, Bitcoin briefly surpassed silver in market capitalization, becoming the world's eighth-largest asset class.
This trend is commonly associated with a surge in demand from retail investors, resulting in accelerated price movements for specific cryptocurrencies, thereby inundating exchanges like Binance with an unexpected influx of transactions.
Despite these operational challenges, Binance recently received acclaim for its cybersecurity initiatives. In 2024, the platform was honored with the Cyber Security Professional Merit Award in the banking and finance category by Hong Kong authorities, marking it as the sole recipient from the Web3 sector to receive such recognition.