Over the weekend, Binance, the world's largest crypto exchange by trading volume, moved a large stash of Bitcoin between its crypto wallets and temporarily paused BTC withdrawals for several hours due to network congestion. According to an analysis of on-chain data, Binance transferred a total of $4.4 billion worth of BTC across its digital asset wallets on Sunday. In response to the move, Binance noted that the coins were being sent to newly created change addresses belonging to the exchange.

In order to safeguard itself against future such events, Binance also adjusted its fees and also hinted at the potential introduction of Bitcoin Lightning Network withdrawals. This system would enable users to transfer coins between one another without having to register their transactions on the Bitcoin blockchain, thereby minimizing fees and maximizing speed.

Moreover, Binance's 24-hours trading volume has become even higher, reaching over $7.6 billion according to CoinMarketCap. This indicates a huge spike in interest towards the crypto exchange to the point that it is currently doing almost eight times more trade than the next-largest crypto exchange. Such turmoil in the market may also have contributed to the surge in transaction fees as cryptocurrency users appear eager to exchange their assets as quickly and efficiently as possible.

At the same time, Bitcoin has recorded a new all-time high for the number of daily transactions and is currently trading at a price of around $27,913.64. All this points to a highly active and well-trafficked market that is growing exponentially. But the fact that Binance had to temporarily pause Bitcoin withdrawals means that more needs to be done to ensure reliability and scalability when such events escalate. Luckily, Binance is already taking steps to preempt any such issues in the future.



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