Binance Suspends Solana (SOL) Withdrawals: Price Impact

What Will Happen to Solana (SOL) After Binance Suspends Withdrawals?

06 March 2024 11:45 UTC

Binance suspended withdrawals on Solana to optimize its infrastructure following the recent surges in the network's activity.
The exchange hopes to present another solution by March 9, 2024, sparking reactions about the action's effect on SOL's price.
Some say that Solana is poised for an upward trend, but the asset's price after the Binance statement shows its influence.

Binance, one of the world’s leading crypto exchanges, announced the temporary suspension of withdrawals on the Solana (SOL) network, sparking speculation SOL’s price stability.

This decision, effective on March 4, 2024, comes after an unexpected surge in transaction volumes on the Solana network, which caused the exchange to struggle to maintain optimal performance levels.

Binance Temporarily Halts Solana (SOL) Withdrawals

Binance has pinpointed several optimization opportunities within the Solana network and is working towards a stable, long-term solution. The anticipated resolution date is set for March 9, 2024, at 18:00 (UTC), a timeline eagerly awaited by the crypto community.

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“Withdrawals on Solana (SOL) network have been intermittently suspended since 2024-03-04 due to the increased volume of transactions on the network,” Binance stated.

The temporary suspension has sparked many reactions and speculation regarding the immediate impact on Solana’s price. Renowned crypto analysts, including the persona Inmortal, weighed in. The pseudonymous trader emphasizes the critical nature of price movements in this volatile period.

“A big wick is irrelevant if it doesn’t get follow up. I like SOL, but all I see here is a deviation. If we don’t claim $127 quickly, that wick will just be decoration,” Inmortal remarked.

Solana (SOL) Price Performance. Source: Inmortal

This statement underscores the delicate balance required to maintain investor confidence and the significance of timely price recoveries. Further adding to the discourse, analyst Kaleo offered a more optimistic outlook. He suggested that Solana could soon experience significant upward movement.

“Solana looks ready to make another leg up back to the Spring ’22 highs. If Bitcoin prices stick in their current range, that would equal a price somewhere around $200 USD per SOL,” Kaleo predicted.

The unfolding scenario places Binance at the center of Solana’s future market performance. The crypto community remains on edge as the platform’s transaction capacity and network scalability directly influence market confidence and price stability.