Due to a reported overflow of transactions on the Bitcoin network, the cryptocurrency exchange Binance halted allowing Bitcoin withdrawals on May 7.
At the time of writing, there were more than 400,000 transactions awaiting processing in the Bitcoin mempool. Before each network node independently verifies incoming transactions, the mempool is referred to as the “waiting area.”
Bitcoin at Crisis
After being suspended for nearly an hour, Binance tweeted that BTC withdrawals had resumed. According to CryptoQuant data, outflows on the cryptocurrency exchange reached their highest point on May 7, reaching $187 million.
It is believed that memecoins like Pepe (PEPE) are to blame for the increase in BRC-20 transactions in recent days. The memecoin exchanging publicity drove Bitcoin exchange expenses to their most elevated point in two years. According to Coin telegraph, the total amount of fees paid on the Bitcoin blockchain reached $3.5 million on May 3, a nearly 400% increase from late April.
BRC-20 is a new experimental token standard that allows users to create and transfer fungible tokens on the Bitcoin blockchain. It was developed in response to Ethereum’s ERC-20 token standard. It is presently turning into a problem area for image tokens.
CoinMarketCap’s information shows that PEPE’s cost has move more than 263% somewhat recently. However, the memecoin is down more than 7%, after a 30% plunge on May 6 as whales profited from the fresh Binance listing. Two weeks ago, crypto exchanges MEXC Global, Bitget, Gate.io, and Huobi introduced PEPE trading pairs, kicking off the hype surrounding the token.
Memecoins have become a significant part of the cryptocurrency industry ever since the introduction of Dogecoin in 2013, making and destroying fortunes. Investopedia characterizes a memecoin as a digital currency addressed “with funny or enlivened images, that is upheld by excited internet based brokers and devotees.”