Binance CEO Notes Bull Market Spike In Gas Fees, Appeals For Positive View
- CEO Changpeng Zhao addressed the issue of surging gas fees resulting from recent disruptions.
- Glassnode report showed a significant rise in Taproot adoption for BTC on-chain transactions.
The world’s largest cryptocurrency exchange, Binance temporarily suspended BTC withdrawals twice within the past 12 hours. As a result, the price of Bitcoin declined by over 2% in the last few hours. Binance CEO Changpeng Zhao publicly commented on the matter on Twitter.
In a recent statement, Zhao addressed the surging gas fees resulting from recent disruptions, acknowledging that prices fluctuate, transactions may become stuck, and fees may rise, prompting complaints from users. “Bull market issues,” he called it. Zhao appealed to the market to take a positive view, pointing out that gas fees are still cheaper than fiat currencies.
Reports suggest that Binance suspended Bitcoin withdrawals due to a substantial backlog of pending transactions, which the exchange was not prepared for. Binance acknowledged the significant volume of outstanding transactions but stated that it did not anticipate the recent surge in Bitcoin network gas fees. It assured users that its team is working to expedite the confirmation of all pending transactions.
Moreover, to address the withdrawal problems, Binance replaced the pending Bitcoin withdrawal transactions with higher fees to increase their chances of being selected by mining pools.
Meanwhile, Binance announced that it is facilitating BTC Lightning Network withdrawals during the ongoing increase in the volume of transactions. It added that it has adjusted gas fees to avoid similar incidents in the future.
A report from blockchain analytics firm Glassnode revealed that on May 7, a record-high of 75.77% of Bitcoin on-chain transactions utilized Taproot, compared to just 1.536% at the start of the year. The surge in Taproot adoption has led to an increase in block sizes and subsequently, transaction fees.