Binance Traffic Reaches New All-Time Highs

Written by Edward Gonzales

February 22, 2021

There’s been a massive increase in traffic on Binance’s servers as many cryptocurrency breakthroughs lead new users onto the exchange. Binance is the number one exchange by volume. Binance is a centralized exchange founded by Changpeng Zhao (CZ for short). It took the number one exchange by volume spot in January of 2018. Since then it has continued to expand and recently broke all-time-highs in traffic multiple times in recent weeks.

Multiple news events have led to the inflow of new users from around the world. Many of these users are signing up to Binance to begin their trading journeys for the first time. This has put a lot of congestion on Binance servers. The exchange is working hard to solve scalability issues. It is important to note that Binance already processes over one million transactions per second. If any exchange grows to the volume that Binance handles, they too will face these issues. 

A lot of investors are speculative of BNB coin as a possible means of storing and transferring value. CZ has reportedly said he never intended for BNB to be a means of storing value or representation of equity. The price drive of BNB is fueled by the simple concept of supply and demand. By simply holding BNB coins in your Binance wallet, you receive discounts on trading fees taken directly from your BNB balance. The discount varies if you are a maker or taker of the trade. Nonetheless, receiving a discount on your trading fees is amazing. 

As more and more users find themselves trading on Binance, it  makes sense that they take advantage of these discounts by using BNB coins. A lot of traders manipulate this coin to produce profits while others simply hold for discounts. The price of BNB has skyrocketed 600% in the past month alone. More and more traders are putting BNB coins in their bags and this only helps sustain the coin’s price action.

There have been some downsides to this new traffic that the Binance team has worked hard to actively resolve. For instance, Binance almost ran out of Dogecoin deposit wallet addresses. When Elon Musk started promoting Dogecoin on his Twitter account, Binance experienced unprecedented waves of Dogecoin deposits with a lack of addresses to receive them. The Binance team was quick to act and resolve the issue before it escalated. 

These have truly been the largest flows of volume to Binance in its history – which is astonishing considering it was already the largest exchange by volume. Another thing to consider with statistics like these is the exchange’s support response time. Nobody cares if information from Google or Twitter is a few minutes old. Some people don’t even notice when this information is old. This is different when dealing with trading cryptocurrency. You need milliseconds for the confirmation on the writing so dealing with issues on scalability is not exactly easy. Binance is doing the best they can to solve unforeseen errors. 

The biggest underdevelopment for Binance must be their customer support response time. There was once a time when a trader could get a response in just a few hours. Now there are so many new traders clogging up the support lines that claims are dragging out for days. This is both a user and a developer issue. It would definitely help if there were not a million users submitting multiple tickets regarding basic queries that could be found in the FAQ’s. It would also help if Binance support could hire more employees to help in response times. Just consider the fact that you wouldn’t want just anyone dealing with your sensitive information. It’s not that Binance doesn’t want to hire more helpers or that they don’t want to help you. It’s just tough to find quality individuals to help with that much sensitive data. Do your part to reduce congestion by scanning the FAQ to see if your problem or question has been answered. You can also subscribe to the Binance official announcements channel on telegram to keep up with the latest news. 

There have been some issues around scalability lately on Binance exchange but that’s not enough to knock it down. The support team is working around the clock to bring satisfaction to its users. Binance is a wonderful exchange to trade on and a lot of trader’s preferred choice. There are many other exchanges that exist, both centralized and decentralized, that can also be used to trade cryptocurrency. If you are looking for a new exchange to trade on, read this short article to learn about cryptocurrency exchanges. If you are new to cryptocurrency, check out some of our free resources and course content available on our website

Written by Edward Gonzales © Crypto University 2021

You May Also Like…

What is a rug pull?

What is a rug pull?

There is currently nearly $500 billion locked up in DeFi. As expected, easy money not only attracts investors/speculators, but...

read more

Share This

Share this post with your friends!