Binance Briefly Suspends USDC and USDT Solana Deposits

Key Takeaways:

  • Binance has suspended deposits of Solana-based USDT and USDC, while OKX has delisted them.
  • The rapid demise of FTX reflected negatively on the entire Solana ecosystem.

The Solana blockchain’s SOL token tested its post-FTX low of $12.45 after Binance revealed Thursday morning that deposits of USD Coin (USDC) and tether (USDT) have been temporarily halted till further mention.

The change follows Crypto.com’s most recent revocation of USDC and USDT for Solana deposits and withdrawals. For its decision, Crypto.com referenced recent industry turmoil. Following this news, the price of Solana (SOL) is dramatically falling.

Binance didn’t offer any justification for the latest suspension . Not all cryptocurrency exchanges have stopped allowing withdrawals of the two most popular stablecoins on the Solana blockchain.

Price of SOL fell by 3.48%, it   is currently trading at $13.70, a decrease of 3.03% over the previous day, according to price analytics site CoinMarketCap. With the most recent effects on SOL, the currently underway bear market’s already dire circumstances have gotten worse. The collapse of FTX and subsequent announcement of its bankruptcy caused a sharp decline in cryptocurrency prices over the previous week.

Another exchange, OKX, declared it would completely remove USDC and USDT from Solana’s list of supported currencies and would no longer support their deposits or withdrawals.

The co-founder and CEO of Circle, Jeremy Allaire, expressed his confusion about the decision in a Tweet and claimed that “USDC on Solana is natively issued by Circle and is functioning fine.”

Some users think it’s obvious that exchanges like binance and OKX are acting in opposition to Solana and USDC because they clearly have other objectives in mind.

The quick demise of FTX resulted in a decline in perception of the entire Solana ecosystem. Decentralized applications with a Solana base have lost $700 million in the ongoing crisis.

SOL is anticipated to fall even further once FTX and Alameda’s assets start to be liquidated as part of their insolvency proceedings. After word of the FTX collapse spread, there was intense selling pressure on the cryptocurrency. The main cause was the rumours that Alameda might sell its SOL holdings.

It’s crucial to remember that these choices only affect users who choose to use stablecoins through the Solana network. Users who choose to withdraw using networks like Polygon, Algorand, or Ethereum, for instance, would not be impacted.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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