In the midst of a sharp fall in the cryptocurrency market, the correction has been 12% – 18% in the past 24 hours. Binance announced on Twitter that they have temporarily suspended withdrawals of ETH and Ethereum-based tokens due to high network congestion.
Withdrawals have resumed.
— Binance (@binance) February 23, 2021
Binance has temporarily suspended Ethereum withdrawals due to network congestion
This is the second time in the past week that Binance has halted Ethereum withdrawals. Specifically, on February 19, Binance also suspended ETH and ERC-20 withdrawals, citing network congestion as the reason. Binance reassured investors that their fund was SAFU but did not provide any additional details during the suspension incidents.
During the suspension incident on February 19, blockchain analyst Larry Cermak was quick to point out that Ethereum does not appear to be congested and that he was unable to withdraw ETH even before the announcement of the suspension.
At the time, Ethereum price was at an all-time high and was ready to break the $ 2,000 mark. However, due to this suspension, ETH price stalled just below the $ 2,000 threshold while BNB surged $ 60 in the same period. This led to a lot of speculation about the motive of this suspension including potential BNB wash.
Etheruem’s gas price was a controversial issue in 2021. Since transaction costs are proportional to network congestion, they are often very different. Ethereum gas price has actually skyrocketed to highs lately, with some sources reporting an average fee of $ 30.
Ethereum Average Gas Price chart | Source: YCHARTS
Ethereum is currently trading for $ 1,492 after falling from an all-time high of $ 2,040 on Feb. 20. ETH is down almost 24% from this high and has fallen back down to its early-year highs. 2018. This market-wide collapse has resulted in a huge liquidation among crypto investors