After suspending Bitcoin withdrawals multiple times in the past 24 hours, the world’s largest crypto exchange announced plans to create a lasting solution.
The firm now plans to include the Bitcoin lightning network for BTC transactions. The only downside is that the alternative comes with a higher fee. But the exchange revealed plans to cushion it.
Binance Plans To Enable BTC Lightning Network Withdrawals
According to a recent report, the exchange is working toward enabling Bitcoin lightning network withdrawals. This move will help clear all backlogs on BTC transactions over the past few days.
Notably, Binance suspended Bitcoin transactions twice within the past 24 hours. On May 7, the exchange halted BTC transactions, stating that network congestion was the reason for its action. It later reported the resumption of the transactions.
Later the firm announced the temporary suspension of Bitcoin transactions again today, May 8. According to its statement, there’s a high backlog of pending BTC transactions. So, it plans to clear up the backlog by introducing the Bitcoin lightning network withdrawals with higher transaction fees.
There is a large volume of withdrawal transactions from Binance still pending as our set fees did not anticipate the recent surge in $BTC network gas fees.
Our team is working to accelerate the confirmation of all pending transactions.
We'll provide updates here.
— Binance (@binance) May 8, 2023
Increasing Demands In The Bitcoin Network
The growing hype around the BRC-20 tokens on the Bitcoin blockchain surged demands on the network. Galaxy Research said BRC-20 tokens contributed 50% of the total Bitcoin transactions on May 2. Subsequently, BTC fees hit a new multi-year high.
Binance explained that there’d been an increase in the BTC network gas fees recently. However, its fee didn’t account for such a surge. Hence, the exchange would readjust its operational charges to include the sudden fee surge.
Further, the exchange stated that it would monitor on-chain activity to initiate timely adjustments once needed. The team is already making moves to enable BTC Lightning Network withdrawals for the present situation.
Notably, Binance witnessed more outflows due to the spike in BTC network demands. According to CryptoQuant, Binance recorded over 162,000 BTC outflows, the biggest BTC withdrawal in the history of crypto.
While addressing the rising wave of FUD among its users, Binance reminded users that all funds are ‘SAFU.’ Also, the firm is putting in all necessary measures to ensure the safety and stability of the exchange.
Featured image from Pexels and chart from Tradingview