Binance Is Facing Issues with Solana Withdrawals

Tuesday, 11/01/2022 | 09:53 GMT by Arnab Shome
  • The Solana network is facing congestion again.
  • The crypto exchange decided to pause withdrawals to clear the backlogs.
Binance logo
Binance logo

Binance announced on Tuesday that withdrawals on the cryptocurrency exchange through the Solana blockchain are facing problems due to congestion in the network.

“The Solana (SOL) network is currently experiencing congestion due to an increase in high compute transactions, which is reducing its network capacity to several thousands of transactions per second and leading to some failed transactions for users,” the exchange stated in the notice.

To cope up with the technical difficulties, Binance has decided to pause the withdrawals via the Solana network from 'time to time' to clear the backlog.

“We are actively working with the project to provide a stable long-term solution,” Binance added.

Solana is one of the popular blockchain projects that is aimed at improving the scalability of decentralized networks with the introduction of a consensus called proof-of-history (PoH), combining it with the proof-of-stake (PoS ).

A Promising Blockchain, but Still Flawed

Launched in 2020, the Geneva-based project saw a massive surge in retail demand for its cryptocurrency that surged more than 10,000 percent in 2021. The cryptocurrency has a total market capitalization of almost $70 billion and is one of the top digital currencies considering that parameter.

The value of Solana peaked last November as the price touched $260. However, it has followed a downward trajectory since then. In the last seven days, the token lost 20 percent of its value and is now trading at $136 apiece, as of press time.

Despite the promises of the project, Solana is no stranger to network congestion. The blockchain was faced clogging multiple times in the past, and once in September, it was so severe that it forced the network to shut for 17 hours.

Binance announced on Tuesday that withdrawals on the cryptocurrency exchange through the Solana blockchain are facing problems due to congestion in the network.

“The Solana (SOL) network is currently experiencing congestion due to an increase in high compute transactions, which is reducing its network capacity to several thousands of transactions per second and leading to some failed transactions for users,” the exchange stated in the notice.

To cope up with the technical difficulties, Binance has decided to pause the withdrawals via the Solana network from 'time to time' to clear the backlog.

“We are actively working with the project to provide a stable long-term solution,” Binance added.

Solana is one of the popular blockchain projects that is aimed at improving the scalability of decentralized networks with the introduction of a consensus called proof-of-history (PoH), combining it with the proof-of-stake (PoS ).

A Promising Blockchain, but Still Flawed

Launched in 2020, the Geneva-based project saw a massive surge in retail demand for its cryptocurrency that surged more than 10,000 percent in 2021. The cryptocurrency has a total market capitalization of almost $70 billion and is one of the top digital currencies considering that parameter.

The value of Solana peaked last November as the price touched $260. However, it has followed a downward trajectory since then. In the last seven days, the token lost 20 percent of its value and is now trading at $136 apiece, as of press time.

Despite the promises of the project, Solana is no stranger to network congestion. The blockchain was faced clogging multiple times in the past, and once in September, it was so severe that it forced the network to shut for 17 hours.

About the Author: Arnab Shome
Arnab Shome
  • 6344 Articles
  • 80 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6344 Articles
  • 80 Followers

More from the Author

CryptoCurrency

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}