The high popularity of meme tokens has caused slow and expensive transactions on the bitcoin network, as a result of which Binance stopped withdrawing BTC several times.
We are talking about the tokens of the new BRC-20 standard, which debuted in January 2023. They use the Ordinals protocol, which extends the capabilities of the bitcoin blockchain. The lion’s share of BRC-20 tokens are meme tokens, of which the most famous and successful is PEPE, which recently exceeded $1 billion in capitalization.
Overloading the Bitcoin network with meme tokens caused a 98% overflow of the transaction buffer (mempool). WhaleWire news account informed today that there were more than 450,000 transactions on the waiting list, pushing the average transaction price up to $19.21, with some exchanges raising fees to $60.
Due to the described technical problems in the network, the Binance exchange began to fail to cope with the withdrawal of funds in bitcoins and stopped it, which, in turn, caused panic selling. The exchange is currently resumed BTC withdrawal.
According to the Cryptocurrency Screener Cryptovizorwhich determines the price of BTC / USD based on the results of trading on spot exchanges, the asset price fell at the time of publication to $ 27,302, which corresponds to a fall of 8.57% compared to the May 6 high.
Michael van de Poppe, head of trading firm Eight, wrote mid-afternoon today that considers the $27,400 and $26,800 levels in terms of going long. According to the setup presented on the chart, the trader is now in a long position.
The opposite strategy is followed by Crypto Tony. After fixing the price below $28,300, he opened short position.
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