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Binance halts Solana withdrawals amid network congestion

Binance has temporarily stopped users from withdrawing funds from the Solana network, citing high transaction demand and technical challenges.

In a notice posted on its website on March 6, Binance said that withdrawals on the Solana (SOL) network have been intermittently suspended since March 4 due to the increased volume of transactions on the network.

“Binance has identified some areas for optimization and is working to provide a stable and long-term solution. The estimated implementation date of the solution is 2024-03-09 18:00 (UTC),” the notice read.

Binance did not specify the exact nature of the technical issues, but said that it was working closely with the Solana team to resolve them as soon as possible. Binance also assured users that their funds were safe and that they could still deposit and trade SOL on the exchange.

Solana is a high-performance blockchain platform that claims to offer fast, scalable, and low-cost transactions. According to its website, Solana can process over 50,000 transactions per second with sub-second finality and minimal fees.

Solana’s native token, SOL, is one of the best-performing cryptocurrencies of 2024, having risen more than 500% since the start of the year. At the time of writing, SOL was trading at $130.81, down 0.68% in the past 24 hours, according to CoinMarketCap. However, SOL was still up over 17% on the weekly chart, outperforming most of its peers.

The surge in SOL’s price and popularity has also increased the demand for its network, which may have contributed to the congestion and withdrawal issues. Binance’s notice of increased trading volumes comes a day after Bitcoin, the leading cryptocurrency, hit a new all-time high above $69,200 on March 5. Bitcoin’s market capitalization briefly surpassed the market cap of silver on March 5, with Bitcoin temporarily becoming the world’s eighth-largest asset.

Despite the recent performance issues, Binance has also received some positive recognition from the authorities. On March 6, the exchange announced that it had received the Cyber Security Professional Merit Award under the banking and finance category from the Hong Kong Police Force. Binance was the only Web3 firm to receive such an award in 2024, which it said was a testament to its commitment to security and compliance.

Binance said that it would update users on the status of the Solana withdrawals as soon as possible, and apologized for any inconvenience caused. Binance also advised users to use alternative networks for withdrawals, such as Binance Smart Chain (BSC) or Ethereum (ETH), if they needed to access their funds urgently.

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