2023-05-08 17:05:55
The world’s largest crypto exchange, Binance, had to temporarily stop Bitcoin payouts as the Bitcoin network experienced a significant overload.
The crypto exchange suspended payments several times within a short period of time due to a backlog of pending transactions. The first suspension lasted more than an hour and a half. At that time, the Bitcoin mempool had regarding 400,000 transactions waiting to be processed. According to data from mempool.space, by the time of the second stoppage of payments, which occurred 8 hours following the first, this had already increased to 485,000.
We’re replacing the pending $BTC withdrawal transactions with a higher fee so that they get picked up by mining pools.
We aim to reopen $BTC withdrawals in the next hour.
— Binance (@binance) May 8, 2023
Nearly three hours following the first shutdown, Binance he announced, that payouts have been restarted and pending transactions are being processed with higher transaction fees so that mining pools can compete. The company added that they are working on enabling payments over the Lightning Network, which they say might help solve similar issues in the future.
“In order to prevent similar cases in the future, we have reconsidered our fees. We will continue to monitor on-chain activity and adjust them accordingly if necessary. On the other hand, we are also working on the integration of Lightning Network payments so that similar cases do not occur in the future.” Binance said.
To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and adjust accordingly if needed.
Our team has also been working on enabling BTC Lightning Network withdrawals, which will help in such situations.
— Binance (@binance) May 8, 2023
As a result of the events, the price of bitcoin also began to decrease. Transaction fees have reached an all-time high, and the mempool is almost 98% full. At the time of writing, the world’s number one cryptocurrency is trading at $27,962, according to data from CoinMarketCap.
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