Binance Is Facing Issues with Solana Withdrawals

Binance announced on Tuesday that withdrawals on the cryptocurrency exchange through the Solana blockchain are facing problems due to congestion in the network.

“The Solana (SOL) network is currently experiencing congestion due to an increase in high compute transactions, which is reducing its network capacity to several thousands of transactions per second and leading to some failed transactions for users,” the
 
 exchange 
stated in the notice.

To cope up with the technical difficulties, Binance has decided to pause the withdrawals via the Solna network time to time to clear the backlog.

“We are actively working with the project to provide a stable, long-term solution,” Binance added.

Solna is one of the popular blockchain projects that is aimed at improving the scalability of decentralized networks with the introduction of a consensus called proof-of-history (PoH), combining it with the
 
 proof-of-stake (PoS 
).

A Promising Blockchain, but Still Flawed

Launched in 2020, the Geneva-based project saw a massive surge in retail demand for its cryptocurrency that surged more than 10,000 percent in 2021. The cryptocurrency has a total market capitalization of almost $70 billion and is one of the top digital currencies considering that parameter.

The value of Solana peaked last November as the price touched $260. However, it followed a downward trajectory since then. In the last seven days, the token lost 20 percent of its value and is now trading at $136 apiece, as of press time.

Despite the promises of the project, Solana is no stranger to network congestion. The blockchain was faced clogging multiple times in the past and one in September was so severe that it forced the network to shut for 17 hours.

Binance announced on Tuesday that withdrawals on the cryptocurrency exchange through the Solana blockchain are facing problems due to congestion in the network.

“The Solana (SOL) network is currently experiencing congestion due to an increase in high compute transactions, which is reducing its network capacity to several thousands of transactions per second and leading to some failed transactions for users,” the
 
 exchange 
stated in the notice.

To cope up with the technical difficulties, Binance has decided to pause the withdrawals via the Solna network time to time to clear the backlog.

“We are actively working with the project to provide a stable, long-term solution,” Binance added.

Solna is one of the popular blockchain projects that is aimed at improving the scalability of decentralized networks with the introduction of a consensus called proof-of-history (PoH), combining it with the
 
 proof-of-stake (PoS 
).

A Promising Blockchain, but Still Flawed

Launched in 2020, the Geneva-based project saw a massive surge in retail demand for its cryptocurrency that surged more than 10,000 percent in 2021. The cryptocurrency has a total market capitalization of almost $70 billion and is one of the top digital currencies considering that parameter.

The value of Solana peaked last November as the price touched $260. However, it followed a downward trajectory since then. In the last seven days, the token lost 20 percent of its value and is now trading at $136 apiece, as of press time.

Despite the promises of the project, Solana is no stranger to network congestion. The blockchain was faced clogging multiple times in the past and one in September was so severe that it forced the network to shut for 17 hours.

Source: https://www.financemagnates.com/cryptocurrency/news/binance-is-facing-issues-with-solana-withdrawals/