New fear in the market cryptocurrencies, repeatedly painted red. What happened to this new bloodbath this time? On this occasion, what Bitcoin has can almost be summed up. “died from success”. But let’s start by explaining the most recent and that’s it. Binance restarts Bitcoin withdrawals after justifying two stops in less than 12 hours Blockchain congestion. Surely some suspensions triggering alarm in the industry and affecting other cryptocurrencies and tokens in a cascade.
The company applied higher wages to transactions waiting to be processed by Bitcoin miners, the computing platforms that run the network. Withdrawals fell by more than two hours on Monday in Asia.
“Our rates have been adjusted to prevent a similar relapse in the future,” the company said. “We will continue to monitor on-chain activity and adjust accordingly if necessary.” Binance It also stopped Bitcoin withdrawals About 90 minutes on Sundayblamed the bottleneck in the token’s blockchain.
bitcoinThe largest cryptocurrency fell by as much as 3.7% and was trading at approx. $27,950, 9:05 today, London. The index of the top 100 digital assets also recorded a similar decline. Binance is by far the largest exchange in the digital asset industry after the collapse of rival FTX last year. According to data from CoinGecko, the trading volume on the platform has exceeded $7 billion in the last 24 hours, more than five times that of the next platform, OKX.
Ordinal numbers, the source of the problem
Earlier this year, the Bitcoin developer Casey Rodarmor started a protocol called ordinal numbershelped people print coins that were not double (NFTs) for the first time on the network. This has increased transactions on the Bitcoin blockchain. NFTs or digital collectibles are usually ethereum, the most important commercial avenue of cryptocurrencies. Its appearance on the Bitcoin network represents a new implementation of a blockchain best known for its value storage and payment functions.
He said the rankings caused “a massive increase in network fees and congestion”. Hayden HughesCo-founder of Alpha Impact social trading platform. Binance also used the hackneyed crypto phrase “comfort funds SAFU” in its tweets to imply that client funds are safe.
Last year’s cryptocurrency crash and bankruptcies like FTX have undermined confidence in digital asset platforms and skepticism continues to plague the industry. Binance and its competitors have stepped up their efforts to address concerns about whether they have sufficient reserves.
Historical rate mismatch
Withdrawal fees charged by exchanges were below the fees charged by miners. Stefan von Haenich, the sales manager of OSL SG Pte in Singapore. “The queue of transactions pending verification for inclusion in the blockchain has experienced significant growth in recent days, resulting in increased transaction fees and confirmation times,” he explained.
at Binance Moved nearly $4.4 billion worth of Bitcoin on Sunday among digital asset wallets, according to an analysis by research firm CryptoQuant. The exchange said in a tweet that Bitcoin was moved “between Binance hot and cold wallets due to BTC address adjustments”.
This cold wallets Unlike hot wallets, they are not connected to the internet and are considered a safer way to store digital currency.