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 company 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 accommodate it.
Binance plans to enable BTC Lightning network withdrawals
According to a recent report, the exchange is working to allow withdrawals from the Bitcoin lightning network. This move will help clear all backlogs of BTC transactions from the past few days.
Notably, Binance has suspended Bitcoin transactions twice in 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 transactions.
The company later announced the temporary suspension of Bitcoin transactions today, May 8. According to the statement, there is a large backlog of pending BTC transactions. So, it plans to clear the backlog by introducing withdrawals from the Bitcoin Lightning network with higher transaction fees.
There are still a large number of Binance withdrawal transactions pending as our fixed fees did not anticipate the recent increase $BTC network gas fees.
Our team is working to speed up the confirmation of all pending transactions.
We will provide updates here.
— Binance (@binance) May 8, 2023
Increasing demands in the Bitcoin network
The growing hype surrounding the BRC-20 tokens on the Bitcoin blockchain increased the demands on the network. Galaxy research said BRC-20 tokens contributed 50% of total Bitcoin transactions on May 2. Subsequently, BTC fees hit a new multi-year high.
Binance explained that there had been an increase in BTC network gas rates recently. However, the fee was not responsible for such an increase. Therefore, the exchange would adjust its operating costs to accommodate the sudden increase in costs.
Further, the exchange stated that it would monitor on-chain activity to initiate timely adjustments as needed. The team is already taking steps to enable BTC Lightning Network withdrawals for the current situation.
Notably, Binance witnessed more outflows due to the spike in demand for the BTC network. According to CryptoQuantBinance recorded over 162,000 BTC outflows, the largest BTC withdrawal in crypto history.
Addressing the rising wave of FUD among its users, Binance reminded users that all funds are ‘SAFU’. The company also takes all necessary measures to ensure the security and stability of the stock exchange.
Featured image from Pexels and chart from Tradingview
