Bitcoin has finally broken the USD 20k resistance level. The record price generated massive traffic on a large number of crypto exchange platforms such as Binance and Coinbase.
Bitcoin All-Time Price High is causing problems with Binance
For weeks, many crypto enthusiasts have been hoping that the price of bitcoin would raise the USD 20k resistance barrier. That record was recently broken, as bitcoin (BTC) not only broke the USD 20k resistance but also passed as high as it did $ 23k in the last 24 hours.
As a result of this all-time high (ATH) price, crypto exchanges around the world have witnessed a massive increase in their traffic. Even some of the largest and most popular platforms were overwhelmed by the amount of traffic they could pull within this time period. Binance and Coinbase, in particular, had the most traffic, so their platforms saw some issues.
Binance’s chief executive officer, Changpeng Zhao (CZ), in a tweet, told its platform users that the plant was currently experiencing a scaling issue that would be resolved immediately. According to him, the platform had underestimated demand for the crypto asset, which resulted in difficulties for its trading exchange.
To avoid any future recurrence of such problems, he added that the company was adding “many more servers”.
Some latency issues here and there. Work on it, all hands on deck. 🙏
Bitcoin is up 5%, traffic is up 30x. https://t.co/lxSAX4lx3B
– CZ Binance (@cz_binance) December 16, 2020
Zhao also noted that Binance was experiencing some latency issues, but the exchange is doing its best to fix the issue. He further confirmed that traffic is not uncommon because whenever the price of the coin moves by at least 5%, there is always an increase in traffic.
Coinbase is also experiencing problems
Coinbase also faced similar issues to Binance. The company made one Announcement regarding this problem and went on to solve the problem almost immediately.
While Binance’s was a one-off, Coinbase has a history of recurring issues on its platform that it commonly refers to as “ connectivity issues. ”
The company’s CEO, Brian Armstrong, has made it known on several occasions that the company was working diligently to resolve such an issue in the exchange.
Apparently the company is experiencing technical difficulties when its website has a higher engagement rate.
What do you think about the main crypto exchanges that face problems when crypto prices run high? Let us know what you think about this topic in the comments below.
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