The cryptocurrency market had crashed amidst environmental concerns. The market crash has bought a lot of Hodlers as well as panic sellers. The market capitalization of cryptocurrencies fell from above $2 trillion to $1.78 trillion. The past week had seen unparallel volatility with the market flooded by buyers and sellers.
Binance, the world’s largest crypto exchange, had temporarily suspended Ethereum (ETH) withdrawals from the exchange as the orders kept piling up. Coinbase, another major crypto exchange, had also been suffering from downtimes. Binance had also been cited to freeze users’ accounts for prolonged periods of time and without citing any solid reason.
Two of the major cryptocurrency exchanges have not been able to handle the large traffic in the crypto market – with others struggling as well. Both exchanges have commented on working towards resolving the issues but is the market not ready for cryptocurrency adoption yet?
Bitcoin’s Proof of Work (PoW) mechanism had been under a lot of debate. Various researches have pointed out towards the exorbitantly high energy consumption of cryptocurrencies operating with the PoW staking mechanism. However, it was not until Elon Musk that the cryptocurrency sphere took the matter seriously.
Elon Musk’s Tesla had earlier announced to accept Bitcoin as a mode of payment but the billionaire CEO announced that Tesla is ceasing the acceptance of Bitcoin as a payment method. The announcement caused an uproar in the market which led to a brutal market crash. At the time of writing, the king of cryptocurrencies is down by nearly 20% in the weekly window. As the market shows some reversal, whether or not the leading exchanges are ready for the behemoth cryptocurrency industry is set to become is under debate.