Binance Exchange Stumbles Across a New Problem, Halts Deposits, and Withdrawals – Here’s What Happened

Binance has said that it has temporarily stopped BSC deposits and withdrawals due to a node issue following the Binance Smart Chain (BEP20) network update. The largest cryptocurrency exchange Binance alerted its users through an official update on its website and said that it will be resolved soon. 

Binance has experienced problems twice in the past week. After the matching engine ran into a fault with the trailing stop order on March 24, the exchange shut down all spot trading.

“Due to a node issue following the Binance Smart Chain (BEP20) network upgrade, we have temporarily closed BSC deposits and withdrawals. Our team is working to fixing the issue, with an estimated completion time of 1-hour.”

The new proposal was a response to Layer 2 networks as well, which have significantly reduced the expenses for networks like Ethereum. Hence, customers would pay less for transactions if the new proposal is approved. Lower costs are significant for a number of factors, including the fact that they encourage more people to use the smart chain.

Network activity has decreased as a result of BSCs’ high fees. According to the plan, BSC’s utilization is currently between 15 and 20%, and if the network does not review its high gas fees, it could get worse.

Additionally, because this would increase the volume of transactions on the network, validators would gain from it as well. They have a financial incentive to keep acting as validators because of this.

BNB Price experienced a dull start to the week as its price dropped on Monday to a new seven-day low of $305. Since then, it has increased in value by around 3%, reaching $316. The decent increase occurred after a rise following a retest of the 50% RSI level and the 50-day moving average.