Binance Announced Suspension of Withdrawals for ETH and ERC-20

Sahaj  |  May 13, 2021

Top cryptocurrency exchange Binance has recently announced the suspension of withdrawals for Ether (ETH) and tokens (ERC-20) based on Ethereum. Binance has recently tweeted that the withdrawals of Ethereum and all the tokens based on its ERC-20 standard are going to be suspended during the temporary maintenance of the wallet.

Binance Announced Suspension of Withdrawals for ETH and ERC-20

The suspension is going to happen from 8:00 am UTC and extend until 9:00 am UTC.

In addition to this, the exchange assures the users that the trading and deposits will be continuing their operations during this period.

Noticing further, the incident is for the third time that Binance has shut down the withdrawals of cryptocurrencies temporarily.

Earlier this week, the users of the exchange were temporarily unable to withdraw their XLM and ETH. 

Following that, the leading exchange suspended all the withdrawals completely, however, they were later restored.

As reported, high gas fees have resulted in Binance suspending the withdrawals of ETH and ERC-20 tokens before the users demanded the exchange reverse its decisions.

This decision by the leading exchange was fueled by the unpredicted volatility in the prices of assets recorded in the entire crypto space, which eventually led to a rise in the gas prices of Ethereum.

Ethereum Expandability Issues Behind the Suspension

At present, the second-largest cryptocurrency stands as one of the most popular blockchains in the world. 

Despite many of its benefits, the network currently faces great issues with expandability and has reportedly driven gas prices to heights that were never seen before.

The Etheruem chain is suffering from network congestion, and it was followed by the decision to suspend ERC-20 and ETH transactions increased by over 1,200 gas alongside over 151,000 pending transactions.

The current inflow of the crypto investors may not be able to be supported due to the expandability issues of Ethereum and subsequent network congestion and high gas fees to a large extent.

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