Binance Suspends Solana Withdrawal Temporarily, Here’s Why

In a recent development, crypto exchange Binance that it would be suspending withdrawals for Solana (SOL) amid high network activity. Currently, the Solana (SOL) price remains steady trading at $131 with a market cap of $58 billion. Also, the 24-hour trading volumes for Solana have surged by a staggering 100% to over $9.5 billion.

Binance Halts Solana (SOL) Withdrawals Temporarily

Binance has announced the intermittent suspension of withdrawals on the Solana (SOL) network since March 4, 2024. The decision was prompted by a surge in transaction volumes on the network, leading to congestion issues.

Binance has disclosed that it has identified areas within the network infrastructure that require optimization to ensure smoother operations. The exchange added that it is actively engaged in addressing these concerns and committed to providing a stable and enduring solution to the withdrawal issues.

According to Binance, the estimated implementation date for the solution will be March 9, 2024, at 18:00 (UTC). This targeted timeline aims to mitigate disruptions and restore normalcy to SOL withdrawals for Binance users.

Binance also apologized for any inconvenience caused by the temporary suspension, emphasizing its dedication to resolving the matter promptly.

SOL Price Action

Last week, the Solana (SOL) price rallied all the way to $142 extending its year-to-date gains to more than 40%. However, SOL faces resistance above $140 and has retraced partially to $135 as of now.

In a recent market analysis, respected crypto analyst KALEO has indicated a bullish outlook for the SOL/BTC trading pair, suggesting that it appears poised for another significant upward movement reminiscent of the highs witnessed in the spring of 2022.

According to KALEO’s assessment, if Bitcoin prices maintain their current range, the anticipated trajectory for SOL against BTC could potentially translate to a valuation approximating $200 USD per SOL. Some market analysts are also expecting the Solana (SOL) price to make new all-time highs soon.

This projection comes amidst ongoing fluctuations in cryptocurrency markets and underscores the intricate relationship between Bitcoin and altcoin performance. KALEO’s analysis offers insights into potential opportunities for traders and investors eyeing the SOL/BTC pair.

$SOL / $BTC 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.

Long it with me here: https://t.co/32dHnZIFxS pic.twitter.com/5LKOVqbnNz

— K A L E O (@CryptoKaleo) March 5, 2024

Data from DeFiLlama reveals a significant surge in Solana’s total value locked, reaching $2.7 billion compared to $1.67 billion precisely one month earlier. The leading contributors to this growth are Marinade with $1.4 billion, followed by Jito with $1.12 billion, and Marginfi with $649 million locked in their respective platforms.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.