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Binance suspends ETH withdrawals amidst the growing price of BNB

Binance unveiled via a tweet that it has temporarily halted the withdrawal of Ethereum and Ethereum-based tokens. It mentioned congestion issues as the basis for the suspension. Nevertheless, after the news, the exchange has assured users that their funds are safe and will keep users notified in due time. While Binance recognized a spike in Ethereum market activity, several think that the congestion isn’t as severe as Binance claims and that it shouldn’t make such a radical decision.

Moreover, the pause occurred abruptly, as the exchange’s Twitter account notified consumers that Binance had temporarily halted withdrawals of ETH and Ethereum-based tokens. About one hour later, they restored the withdrawals. Although, the exchange did not reveal what inspired them to pause such a prominent piece of its foundation.

The slightly vague motivation of “congestion issues” means that Ethereum’s high gas fees were associated with the halt. As per some analysts, the latest Binance movement is a marketing tactic to demonstrate its prowess over Ethereum. 

Amazon Web Services is the reason behind Binance halting ETH withdrawals?

Nevertheless, FTX CEO Sam Bankman-Fried advocated that the Amazon Web Services group managing both Binance and FTX was down, which developed the platforms’ issues. Bankman-Fried was responding to reports of denial-of-service attacks. This isn’t the first time the site has suspended withdrawals. Last week, the exchange halted some phases of its transactions following an increase in trading volume caused the price to reach an ATH. Therefore, the crypto company suspended deposits and withdrawals, P2P trading, and some other transactions.

Furthermore, today, the Binance coin (BNB) price reached a new ATH, making it the third-largest crypto. Some analysts link the growth of the Binance Smart Chain to the high gas fees and scalability issues of the Ethereum blockchain. Today, the price of BNB has increased by approximately 39%, while it rallied by above 100% this last week. Pancakeswap, a project based on the Binance Smart Chain, has grown prominently after the year’s commencement. 

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