On May 7, the Bitcoin mempool was jammed with over 400,000 transactions awaiting processing. At the time of writing, the Bitcoin mempool was jammed with over 400,000 transactions awaiting processing. The mempool is known as the “waiting area” for incoming transactions before they are individually confirmed by each network node.
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After nearly an hour of pausing, Binance reported that BTC withdrawals have resumed. According to CryptoQuant statistics, outflows on the cryptocurrency exchange peaked on Sunday, reaching $187 million.
The cause of the bottleneck is thought to be a recent rise in BRC-20 transactions. BRC-20, modeled after Ethereum’s ERC-20 token standard, is a new experimental token standard that allows users to create and trade fungible tokens on the Bitcoin network.
The trading frenzy surrounding memecoins such as Pepe (PEPE) pushed Bitcoin transaction costs to their highest level in two years. According to CoinMarketCap, the PEPE coin has increased by more than 263% in the last seven days. However, the token is down more than 7% as of this writing, after falling more than 30% on May 6 after whales gained on Binance’s recent listing of the memecoin.