- Several top crypto exchanges experienced technical problems in the last 24 hours.
- The main problem seems to have been withdrawal issues attributed to congestion.
- The exchanges reported a sudden surge in transactions due to the market slump.
Several top cryptocurrency exchanges have crashed or experienced technical issues in the last 24 hours. Some of the exchanges affected include Binance, Coinbase, Gemini, Kraken, and India’s largest crypto exchange WazirX.
The problems experienced ranged from failure to display live charts, to suspension of withdrawals. Notably, the withdrawal issues mainly affected Ethereum. An issue the exchanges blamed on network congestion.
$ETH and ERC20 withdrawals are temporarily disabled due to network congestion.
Thank you for your patience and apologies for any inconvenience caused. pic.twitter.com/BbECDgDUay
— Binance (@binance) May 19, 2021
Meanwhile, the crypto market has been having a rough week. In fact, yesterday Bitcoin crashed by 25% in 24 hours to $33,159.69. Similarly, the crypto market cap fell by 31.7%. As expected, the market slump has led to a lot of market movement. While many investors are scrambling to exit the market, there have also been some unexpected developments.
Of note, the crypto slump was triggered by Elon Musk’s Bitcoin remarks, but was further fueled by China. The Asian nation recently banned its financial and payment institutions from participating in the crypto business.
Ironically, one of the companies most severely affected by the crypto crash is Elon Musk’s Tesla.
Contrary to popular belief, the exchange crash seems to be due to a sudden surge in users. In fact, exchanges cited a rise in users rushing to buy the dip as the chief cause behind the crash. Wazir reported that,
The heavy price dip in the market has encouraged more people to buy into the dip thereby causing a tremendous surge in our traffic. We’re seeing approximately 400% more traffic than what we witnessed in the previous month.
In addition, Bitcoin price has rallied in the last 24 years, gaining 2.1% and trading at $40,255.74, at the time of writing.