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Binance closes BTC withdrawals amid congestion on the Bitcoin network

Binance closes BTC withdrawals amid congestion on the Bitcoin network


Crypto exchange Binance closed Bitcoin (BTC) withdrawals on May 7 due to an alleged overflow of transactions on the Bitcoin network. 

Bitcoin mempool was clogged with over 400,000 transactions waiting to be processed at the time of writing. The mempool is known as the “waiting area” for incoming transactions before they are verified independently by each node on the network.

Behind the congestion is believed to be a surge in BRC-20 transactions in the last few days. The trading frenzy on memecoins like Pepe (PEPE) drove Bitcoin transaction fees to their highest point in two years. The PEPE token has jumped over 263% in the past 7 days, according to CoinMarketCap.

Developed after Ethereum’s ERC-20 token standard, BRC-20 is an experimental token standard recently introduced that allows users to create and transfer fungible tokens on the Bitcoin blockchain.

This is a developing story, and further information will be added as it becomes available.