February 27, 2021

Cryptheory

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Binance suspends ETH withdrawals

2 min read

TL;DR Breakdown

  • Binance suspends the withdrawal of Ethereum on its Smart Chain.
  • The platform cites congestion as the reason for the suspension.
  • However, BNB becomes the third-largest crypto by market cap after making a new ATH today.

Binance briefly suspends Ethereum withdrawal

On Friday, Binance revealed via a tweet that it has briefly stopped the withdrawal of Ethereum and Ethereum-based tokens, citing congestion issues as the reason for the suspension. However, following the news, the exchange has guaranteed users that their funds are secure and will keep users informed in due time. 

The leading crypto exchange, with its trading volume twice as much as that of Dsdaq, announced few hours ago that it recently recorded a transaction volume that doubled that of Ethereum. Due to the congestion, the exchange has decided to pause the withdrawal of Ethereum and Ethereum-based tokens.

This isn’t the first time the site would suspend withdrawals. Last week, the exchange suspended some aspects of its transactions after a surge in trading volume caused the price to reach an all-time high. As a result, the crypto company suspended deposits and withdrawals, P2P trading and some other transactions.

Binance Coin make significant gains

Earlier today the price of Binance coin (BNB) reached a new ATH, thus making it the third-largest cryptocurrency. The growth of Binance Smart Chain has been linked to the high gas fees and scalability issues of the Ethereum blockchain. Just today, the price of BNB has risen by over 39% while it rallied by over 100% this last week.

Recently, Pancakeswap, a project based on the Binance Smart Chain has surged significantly since the beginning of the year. As a result, the CEO of the firm had advised Uniswap, an ethereum-based DEX to swap to its Smart Chain.

However, many analysts believe that BSC won’t maintain the surge for long and will reverse at some point due to the fact that it is centralized.





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