Binance working to enable Bitcoin lightning network
May. 8, 2023
By Oluwapelumi Adejumo
Blockchain analytical firm Glassnode reported that Bitoin was "experiencing extremely high demand for blockspace."
Binance is working to enable Bitcoin (BTC) lightning network withdrawals for its users after experiencing issues due to the volume of pending transactions.
In a May 8 Twitter thread, the exchange explained that it had to temporarily pause BTC withdrawals due to the large volume of pending transactions. It continued that there were large volumes of BTC withdrawal transactions from the exchange that were yet to be processed.
According to Binance, the recent surge in BTC gas fees caused this failure. However, it said it would replace pending transactions with higher fees so mining pools could process them.
The exchange eventually reopened BTC withdrawals after about 2 hours, saying that it had increased the transaction fees.
“To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and adjust accordingly if needed,” it added.
Meanwhile, this is not the first time Binance has paused BTC withdrawals. The exchange had earlier paused withdrawals on May 7 for about one hour. At the time, it cited network congestion issues.
There have also been instances where Binance paused withdrawals and deposits for other digital assets due to technical issues on the exchange. In December 2022, the exchange paused USDC withdrawals because the exchange was conducting a token swap involving the Circle-backed stablecoin.
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