Binance is working to enable Bitcoin lightning network
Binance is working on enabling Bitcoin (BTC) lightning network withdrawals for its users after experiencing problems due to the volume of pending transactions.
In a Twitter May 8 threadexplained to the stock exchange that it had to temporarily pause BTC withdrawal due to the large volume of pending transactions. It continued that there were large volumes of BTC withdrawal transactions from the exchange yet to be processed.
According to Binance, the recent increase in BTC gas fees caused this error. However, it said it would replace pending transactions with higher fees so that mining pools could process them.
The exchange eventually reopened BTC withdrawals after about 2 hours, saying it had increased transaction fees.
“To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor activity in the chain and adjust accordingly if necessary,” it added.
Meanwhile, this is not the first time Binance has paused BTC withdrawals. The exchange had earlier put on pause withdrawal on May 7 for approximately one hour. At the time, it cited network congestion issues.
There have also been cases where Binance stopped withdrawals and deposits for other digital assets due to technical issues on the exchange. In December 2022, the exchange paused USDC withdrawals because the exchange conducted a token swap involving the circle-backed stablecoin.
BTC network fees are rising
Bitcoin transaction fees have increased significantly in recent months and are currently around $10 after rising to as high as $26 a few hours ago. There are also over 424,000 unconfirmed transactions on the network per press time.
While $10 may seem low, it is relatively high, given that Bitcoin transaction fees were around $1 about six months ago. Binance CEO Changpeng Zhao so the increase in transaction fees is a sign of a bull market.
Blockchain analytical company Glassnode reported that the network “experienced extremely high demand for blockrooms powered by BRC-20 tokens, using text-based inscriptions and verbiage.”
Glassnode added that the average fee paid per block has risen to 2.9 BTC – almost as high as previous bull peaks.
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