Binance, the world’s largest cryptocurrency exchange, has suspended all spot trading temporarily due to an undisclosed issue. The exchange has not yet disclosed the nature of the problem, but it has assured its users that it is working to restore full functionality as soon as possible, suggesting that it is not a significant bottleneck.
Binance currently dominates over 60% of all crypto spot volume and has increased its market share of Bitcoin spot volume to over 90% in recent quarters. This growth can be attributed to zero commission trading, according to Arcane Research.
The news of the temporary suspension of spot trading on Binance has had an immediate effect on the cryptocurrency market, with Bitcoin falling 1% to $27,649 and Ethereum falling 2% to $1,751.
The sudden halt of trading without prior notice has reminded many of the importance of decentralized finance (DeFi), which operates without the need for centralized exchanges like Binance. DeFi provides users with more control over their assets and can help avoid similar disruptions in the future.