Due to an “increased volume of transactions,” Binance cryptocurrency exchange has temporarily suspended withdrawals to the Solana network.
A Binance statement issued on March 6 states that the exchange anticipates resuming withdrawals on March 9 following the implementation of a solution.
“Uniform suspensions of withdrawals on the Solana (SOL) network have been in effect since 2024-03-04 due to the network’s increased transaction volume.” Binance has identified certain optimization areas and diligently strives to develop a sustainable and enduring resolution. “At 18:00 (UTC) on 2024-03-09 is the estimated date of solution implementation.”
According to CoinMarketCap data, Solana’s SOL token expired at $130.81, a decrease of 0.68% in the twenty-four hours preceding 10:40 a.m. UTC. Over 17% of the coin has increased on the weekly chart.
Last week, Binance, Coinbase, Kraken, and Bybit, among other heavily trafficked cryptocurrency exchanges, encountered performance difficulties.
Increasing workloads from algorithmic trading firms and expanding retail interest have been the primary causes of these outages, Ivo Crnkovic-Rubsamen, chief strategy officer and technical lead for trading at the dYdX exchange, told Cointelegraph in an exclusive interview.
“Due to the high level of retail interest and the rapid pace of price action, algorithmic trading firms are substantially augmenting the volume of order placements and cancellations they transmit to the matching engine to sustain their positions […] “During periods of extreme activity, it is not uncommon for a trading firm to process 20 times the volume of orders and cancellations.”
The announcement of increased trading volumes by Binance arrived one day after Bitcoin surpassed $69,200 for the first time on March 5.
