See More

Breaking Binance Suspends Ethereum Withdrawals (Again) Due to ‘Network Congestion’

1 min
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Binance has temporarily suspended Ethereum withdrawals due to “network congestion.”
  • A similar incident occurred on Feb. 19.
  • ETH is currently down almost 23% on the week.
  • promo

The Binance cryptocurrency exchange announced on Twitter at 9:20 AM GMT that it has “temporarily suspended withdrawals of ETH and Ethereum-based tokens due to high network congestion.”

This makes for the second time in the past week that Binance has suspended its Ethereum withdrawals.

A similar incident occurred on Feb 19, where Binance also suspended ETH and ERC-20 withdrawals, also citing “network congestion” as the reason.

Binance reassured investors that their “funds are SAFU” but didn’t provide any additional details in either suspension incidents.

Binance Pulls the Plug

During the suspension incident on Feb. 19, blockchain analyst Larry Cermak was quick to point out that Ethereum didn’t seem to be congested and that he was unable to withdraw ETH even before the suspension announcement.

At that time, Ethereum (ETH) was around its all-time high and poised to break the $2,000 mark. Binance Coin (BNB) prices were booming as well. However, due to this suspension ETH prices stagnated just below the $2,000 threshold while BNB surged $60 in the same duration.

This led to even more speculation about the motives of this suspension including potential wash trading of BNB.

Etheruem’s gas prices have been a contentious issue in 2021. Since transaction costs are directly proportional to the congestion of the network, they often vary wildly.

Ethereum gas prices have indeed spiked to highs recently, with some sources reporting $30 average fees.

Ethereum Average Gas Price chart from YCHARTS

Ethereum Price Update

Ethereum is currently trading for $1,492 after falling from an all-time high of $2,040 on Feb. 20. ETH tumbled nearly 24% since this high and has dropped back to its early-2018 high levels.

This marketwide crash has led to huge liquidations among crypto investors. More than $5.5 billion in positions have been liquidated in the past 24 hours according to data from Bybt.

Cryptocurrency Liquidations data from Bybt
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

images-e1706008039676.jpeg
Advertorial
Advertorial is the universal author name for all the sponsored content provided by BeInCrypto partners. Therefore, these articles, created by third parties for promotional purposes, may not align with BeInCrypto views or opinion. Although we make efforts to verify the credibility of featured projects, these pieces are intended for advertising and should not be regarded as financial advice. Readers are encouraged to conduct independent research (DYOR) and exercise caution. Decisions based on...
READ FULL BIO
Sponsored
Sponsored