Bitcoin Network Overflows, Binance Halts BTC Withdrawals
On May 7, the Bitcoin mempool was congested with over 400,000 transactions waiting to be processed. Due to this, crypto exchange Binance had to halt Bitcoin (BTC) withdrawals, citing an alleged overflow of transactions on the Bitcoin network. The mempool is known as the “waiting area” for incoming transactions before they are verified independently by each node on the network. Binance tweeted that BTC withdrawals had resumed after nearly an hour of halting. Outflows on the crypto exchange peaked on Sunday, rising to $187 million, according to data from CryptoQuant.
The congestion in the network is believed to be due to a surge in BRC-20 transactions in the last few days. BRC-20 is an experimental token standard recently introduced that allows users to create and transfer fungible tokens on the Bitcoin blockchain. Developed after Ethereum’s ERC-20 token standard, BRC-20 has gained significant traction in recent times, leading to a surge in transactions on the Bitcoin network.
The surge in transactions has also been driven by the trading frenzy on memecoins like Pepe (PEPE). This has driven Bitcoin transaction fees to their highest point in two years. The PEPE token has jumped over 263% in the past 7 days, according to CoinMarketCap. However, the token is declining over 7% at the time of writing, after dropping over 30% on May 6 as whales profited from Binance’s recent listing of the memecoin.
It is important to note that this is a developing story, and further information will be added as it becomes available.