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Binance Temporarily Halts Transactions on Solana and Ape; Here Are Reasons

Fri, 04/29/2022 - 16:01
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Tomiwabold Olajide
Binance notes on its website that withdrawals on the Solana (SOL) network have been suspended
Binance Temporarily Halts Transactions on Solana and Ape; Here Are Reasons
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Binance has temporarily suspended Solana withdrawals and the Ape lending function, as reported by cryptojournalist Colin Wu. Binance notes on its website that withdrawals on the Solana (SOL) network have been suspended a few times since April 25.

It cites the reason for this: "This is due to high withdrawal volume generated with blank transaction IDs. Once it is confirmed that the on-chain transactions failed, the corresponding withdrawal requests would be rejected. The entire process takes at least four hours."

Binance says it is actively working with the project team to provide a stable, long-term solution to reduce transaction failure and enhance the user experience and will provide updates on the situation as the need arises.

The top crypto exchange also suspended the APE lending function, citing reasons of excessive demand and that the amount of APE remaining for lending was insufficient. According to Coinglass data, futures tracking ApeCoin's APE tokens lost about $40 million in liquidations during a volatile 24 hours.

In the crypto market, liquidations occur when a trader does not have enough funds to cover a margin call, which is when an exchange requests additional collateral to keep the trading position financed. APE prices rose to a high of $27.62 on Thursday from a low of $19.11 the day before.

However, due to profit-taking, APE token fell to as low as $20.51 on the FTX platform on Friday. Bitcoin (BTC) and Ether (ETH) both slid nearly 3% in the last 24 hours as several assets on the crypto market recorded losses.

APE's recent ascent to all-time highs came ahead of the popular Bored Ape Yacht Club (BAYC) ecosystem's virtual land sales. Developers confirmed in a tweet on Friday that the virtual land will be auctioned for a flat price of 305 APE, which may have boosted APE demand among traders. The land was supposed to be sold in a Dutch auction. APE has more than doubled in price since mid-April, when it was around $11, with the increased volatility driving up the trading volume on the token's futures.

GMT and APE, as reported by U.Today, are two of the most volatile assets on the cryptocurrency market, with tokens gaining from 100% to 444% in less than a month, making them the most profitable assets among the top 100 assets by capitalization.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.