‘Memepool’ full: Here’s how exchanges adjust Bitcoin withdrawal fees

Amid the ongoing spike successful Bitcoin (BTC) transaction fees, immoderate cryptocurrency exchanges person moved to set the outgo of withdrawing BTC from their platforms.

The United States-based speech Kraken has accrued Bitcoin withdrawal fees to lucifer the existent fees on-chain, the company’s lawsuit enactment manager wrote connected Reddit connected May 10.

“This helps guarantee withdrawals are processed on-chain successful a timely manner,” the enactment manager noted.

Kraken’s typical besides referred to the company’s nationalist database of cryptocurrency withdrawal fees and minimum withdrawal amounts. According to the data, Kraken charges 0.00035 BTC, oregon astir $10, for a Bitcoin withdrawal, with a minimum magnitude of 0.0005 BTC, oregon $13.

Kraken Support connected expanding BTC fees. Source: Reddit

The minimum BTC withdrawal magnitude connected LN besides importantly differs from non-Lightning BTC, starting from arsenic debased arsenic 0.00001 BTC, oregon little than $1.

The enactment manager besides advised customers to see utilizing Lightning Network (LN) arsenic an alternative. Adopted by Kraken successful March 2022, the LN enactment allows users to retreat BTC from the level escaped of charge.

Bitcoin withdrawal fees and minimum withdrawal amounts connected Kraken. Source: Kraken

Kraken’s nationalist withdrawal fees are importantly smaller than those of different large exchanges. Crypto speech OKX charges betwixt 0.00096 BTC ($26) up to 0.00192 BTC ($53) for a Bitcoin withdrawal, a spokesperson for OKX told Cointelegraph. The minimum withdrawal magnitude is 0.001 BTC, oregon $27.

OKX declined to remark connected whether the speech volition summation withdrawal fees owed to skyrocketing Bitcoin transaction costs. The level besides implemented LN successful 2022 though.

Kraken isn’t the lone speech that has adjusted BTC withdrawal fees amid the ongoing memecoin trading frenzy though.

Crypto speech KuCoin uses dynamic accommodation for BTC withdrawal fees and minimum withdrawal amounts, a spokesperson for the steadfast told Cointelegraph connected May 10. The accommodation is based connected the magnitude of existent processing fees connected the chain, truthful that Kraken is “compatible with the marketplace situation,” the typical noted.

“As of this moment, our withdrawal interest is betwixt 0.00002 and 0.001 BTC and the minimum withdrawal magnitude is 0.0005 BTC,” the spokesperson stated, adding:

“With respect to implementation of Lightning Network, KuCoin has not yet deployed LN, nevertheless we volition actively show the marketplace and marque adjustments if needed.”

KuCoin’s existent Bitcoin withdrawal fees are akin to those implemented connected different exchanges similar Huobi oregon Binance.

Related: Coinbase calls Pepe a ‘hate symbol,’ prompting calls to boycott the exchange

“On-chain withdrawal fees are accrued owed to BTC web congestion. The existent withdrawal interest is 0.001 BTC,” a spokesperson for Huobi told Cointelegraph connected May 11. Huobi has besides not implemented Lightning yet arsenic well. “The Lightning Network is presently nether discussion,” the Huobi spokesperson said.

According to nationalist information, Binance besides charges 0.001 BTC ($27) arsenic a BTC withdrawal fee, portion the minimum withdrawal magnitude is 0.002 BTC, oregon $55.

Despite comparatively costly BTC withdrawal fees, Binance has inactive experienced large issues with withdrawals amid the ongoing “memepool” congestion recently. On May 8, Binance was forced to halt withdrawals 2 times successful 12 hours amid 400,000 transactions getting stuck connected the Bitcoin mempool. The events person pushed Binance to earnestly see implementing LN.

Multiple exchanges, including Coinbase, Bybit and Crypto.com, didn’t respond to Cointelegraph’s petition for comment.

Magazine: Asia Express: Justin Sun’s SUI-farming sins, PEPE’s chaotic run, 3AC’s oyster philosophy