Key Highlights:
- Binance temporarily suspends Solana withdrawals to address high transaction volume, affecting SOL token’s stability.
- Despite industry-wide exchange outages, Binance garners recognition for cybersecurity efforts, earning a prestigious award in 2024.
Yello Paradisers! Binance has announced the temporary suspension of withdrawals on the Solana network due to a significant increase in transaction volume. The exchange cited the need to optimize its systems to handle the sudden surge in transactions effectively.
Challenges Faced by Binance
The suspension of Solana withdrawals began on March 4 and is expected to last until at least March 9, or until Binance implements a solution to address the high transaction volume. According to data from CoinGecko, Binance accounts for approximately 24% of the total transaction volume of SOL, with an estimated daily volume of $2.4 billion.
Despite the temporary suspension, Solana’s native token, SOL, experienced a modest 3.8% dip over the past 24 hours, trading at $127. However, SOL has seen a notable 14.5% increase in value over the past week.
Industry-Wide Challenges
Binance’s struggles with performance bottlenecks amid increased trading activity are not unique, as other major exchanges, including Coinbase, Kraken, and Bybit, have also reported outages in recent weeks. These issues have been attributed to a combination of factors, such as growing retail interest in cryptocurrencies and a surge in orders from algorithmic trading firms.
Coinbase experienced technical difficulties around the time Bitcoin surpassed the $67,000 mark, briefly overtaking silver to become the world’s eighth-largest asset class by market capitalization.
Recognition for Cybersecurity Efforts
Despite the operational challenges, Binance received recognition for its cybersecurity efforts in 2024. It was awarded the Cyber Security Professional Merit Award in the banking and finance category by Hong Kong authorities, making it the only Web3 firm to receive such prestigious recognition.
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