Top crypto exchange Binance suffered multiple withdrawals of Bitcoin (BTC) on Sunday as new BRC-20 tokens triggered a massive surge in BTC transaction fees.
Binance first announced on Sunday morning that it had temporarily suspended BTC withdrawals due to a congestion issue with the Bitcoin network.
Recordings resumed about 90 minutes later, but then stopped a few more hours later that day.
Changpeng Zhao, the CEO of the exchange, attributed the temporary cessation of recordings at the huge fluctuation in Bitcoin network fees.
4. There are some FUD about BTC withdrawal issues. Here’s why. Bitcoin network fees fluctuate, 18x in a month. ?????
(the screenshot is a Google Translate version) pic.twitter.com/iYcEx22xMJ
— CZ? Binance (@cz_binance) May 8, 2023
Bitcoin network costs have skyrocketed due to a surge in demand for BRC-20 tokens.
Created by pseudonymous on-chain analyst Domo, the new experimental token standard built for Bitcoin uses ordinal numbers, or inscriptions built into Satoshis, to stake, store and transfer tokens.
Although loosely modeled after Ethereum’s (ETH) ERC-20 tokens, the BRC-20s are substantially different due to the different architecture of Bitcoin’s blockchain.
Zhao say Binance’s withdrawal problems are “bull market issues”.
“Gas prices fluctuate and rise, transactions stall, fees rise, people complain. Bull Market Issues. Look on the bright side though, still faster and cheaper than fiat.
Bitcoin is trading at $27,479 at the time of writing. The top-ranked crypto asset by market capitalization is down nearly 5% in the past 24 hours.
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