Bitcoin has finally broken the $20k resistance level. The record-breaking price caused massive traffic on a myriad of crypto exchange platforms like Binance and Coinbase.
Bitcoin All-Time Price High Causes Issues on Binance
For weeks now, many crypto enthusiasts have been hoping that the price of bitcoin would scale the $20k resistance barrier. That record was broken recently, as bitcoin (BTC) not only broke the $20k resistance but also got as high as over $23k within the last 24 hours.
As a result of this all-time high (ATH) price, crypto exchanges around the globe witnessed a massive surge in their traffic. Even some of the biggest and most popular platforms were overwhelmed with the amount of traffic they were able to draw within this period. Binance and Coinbase, in particular, had the most traffic, which caused their platforms to see some issues.
The chief executive officer of Binance, Changpeng Zhao (CZ), in a tweet, told his platform users that the exchange was currently experiencing a scaling issue that was going to be fixed immediately. According to him, the platform had underestimated the demand for the crypto asset, which resulted in difficulties for his trading exchange.
To mitigate against any future recurrence of such issues, he added that the firm was adding “a lot more servers.”
Still some latency issues here and there. Working on it, all hands on deck. 🙏
Bitcoin goes up 5%, traffic goes 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 remove the problem. He went on to confirm that the traffic is not unusual because whenever the price of the coin moves by at least 5%, there is always a surge in traffic.
Coinbase Also Experiences Issues
Coinbase also experienced similar issues to the one facing Binance. The firm made an announcement regarding this issue and went on to resolve the problem almost immediately.
While that of Binance was a one-off, Coinbase has a history of recurring issues on its platform which it usually tags as “connectivity issues.”
The firm’s CEO, Brian Armstrong, has made it known several times that the firm was assiduously working to remove any such problem on its exchange.
Apparently, the firm tends to experience technical issues when its website has a higher engagement rate.
What do you think about the major crypto exchanges experiencing issues when crypto prices run high? Let us know what you think about this subject in the comments section below.
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