This Monday, the cryptocurrencies they move back up to 5% and do a 180 degree turn. Bitcoin it yields 4% in the last 24 hours and operates around US$27,800. Meanwhile, Ethereum cut another 3% but remains in its support zone above $1,800.
The rest of the cryptocurrencies operate with declines of up to 5% led by Solana (SOL) and Polygon (MATIC).
The reasons for the fall
To find the main reason behind this drop, you have to look at Binance. The largest ‘exchange’ in the world has stopped bitcoin transactions on two occasions and in less than 12 hours due to network congestion that caused a “large volume of pending transactions ”. According to the company led by Changpeng Zhao, this high volume of unverified transactions was due to “our set fees not anticipating the recent increase in gas fees from the BTC network.”
“To avoid a repeat in the future, we have adjusted our rates. We will continue to monitor on-chain activity and adjust accordingly if necessary. Our team has also been working to enable withdrawals on the BTC Lightning Network, which will help in such situations,” Binance explained through her Twitter account, once.
The number of unconfirmed transactions was close to 500,000 when the second stoppage occurred, compared to around 400,000 when the first occurred during the early hours of Sunday to Monday. Now it’s starting to drop, and at around 8am it was slightly over 430,000 in a 12 hour period.
Data from CoinGecko shows that Binance has lost its position in terms of bitcoin trading volume and is no longer in the top 10 exchanges in terms of bitcoin trading pairs.
Likewise, it is believed that the madness of the last few days around meme ‘tokens’ such as Pepe coin (PEPE) affected the queen cryptocurrency. Some of these transactions have been made on the Bitcoin network using the experimental BRC-20 standard, which could have caused this congestion. In the last 30 days, PEPE has risen almost 4,000%, although its price has sunk 50% from the highs reached last Friday, May 5. Numerous analysts continue to warn that this cryptocurrency could be subject to a ‘pump and dump’ movement, as has already happened with hundreds of projects with similar characteristics, and stress that its collapse is imminent.
Joe DiPasquale, CEO of BitBull Capital, has indicated in statements to ‘CoinDesk’ that market sentiment is “on a roller coaster” due to this influence of meme cryptocurrencies. “With PEPE and other meme coins posting high five-figure percentage gains, we would not be surprised if a rally materializes across the market in the short term.” Indian. Likewise, this expert emphasizes that bitcoin has not yet tested support levels on the downside and some data would indicate that volatility is decreasing. “Going forward, we would expect a strong bounce from $25,000 to continue another leg above $30,000,” he concluded.
Source: Ambito
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