Binance Suspends ETH and ERC-20 Tokens Withdrawals, Cites ‘Network Congestion’

News / 19.02.2021

Largest cryptocurrency exchange by trade volume Binance has suspended Ether (ETH) and other ERC-20 tokens, following the Ethereum network’s congestion.

“#Binance has temporarily suspended withdrawals of $ETH and Ethereum-based tokens to address a congestion issue,” Binance noted in an announcement shared on Twitter today.

However, the exchange assured users that their funds are safe while it waits for the issue to be resolved.

Users Accuse Binance Of Having Hidden Agenda

Binance users have taken to the popular microblogging platform to vent their frustration, saying the exchange has a hidden motive for suspending ETH and ERC-20 tokens withdrawals.

One of the commenters, Larry Cermak, Director of Research at popular crypto news platform TheBlock noted that the current network congestion is not worth suspending withdrawals of Ethereum-based tokens.

He tweeted that although the Ethereum network was far congested in the past, Binance refused to take such rash decisions for Ethereum-based tokens.

Another user goes by the username @skymoon_gt accused Binance of using a “cheap marketing tactic” to prove its dominance over Ethereum.

BSC’s Pancakeswap Becomes Largest DEX

The move comes on the heels of Pancakeswap, a decentralized exchange built on the Binance Smart Chain (BSC), overtaking Ethereum-based Unisap to become the largest DEX.

According to data on popular crypto tracker platform Coingecko, Pancakeswap achieved the feat after recording a whopping $1.7 billion trading volume in the last 24 hours.

Despite listing few coins, traders still prefer Pancakeswap as their favorite DEX over Uniswap, with WBNB/BUSD being the leading trading pair, which has recorded $413,617,822 24-hour volume. Interestingly, most tokens on Binance Chain are hitting ATH after ATH, with BNB leading the way and currently trading above $300.

DEX traders are choosing Pancakeswap over Uniswap following the massive hike in fees on Ethereum, following the network’s massive congestion.

At the time of writing, there are about 179,254 pending transactions on the Ethereum network with more to join the queue immediately Binance resumes ETH withdrawals, according to data on Etherscan.

With fees on the Ethereum network hitting the roof, which has been the case in the last few months, Binance Smart Chain, on the other hand, has continued to offer a relatively lower fee of around $0.10.

Ethereum Killer?

Before now, Binance CEO, Changpeng Zhao popularly known as CZ, had been accused of launching killer moves against Ethereum with the hope of usurping the network.

With the recent move made by Binance to halt withdrawals of ETH and ERC-20 tokens, some crypto enthusiasts are starting to believe the allegations.

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.