Trading volume for Uniswap and Sushiswap Decentralized Exchange more than doubled as Binance and Coinbase exchanges crashed, preventing users from interacting with their crypto holdings.
The world’s two largest cryptocurrency exchanges, Binance and Coinbase, suffered from service outages on May 19th, having a considerable impact on Bitcoin’s value at the time when it dropped by about $9K.
The service outages are not new for these centralized cryptocurrency exchanges, especially given the high traffic they have experienced over the past 24 hours as users flood the platform while trying to navigate the current volatility of the crypto market.
According to Fortune, more than 775k traders had their accounts liquidated over the last 24 hours due to drops that forced their positions closed, accounting for over $8.5 billion worth of cryptocurrency.
Binance and Coinbase Take Hit With Bitcoin
Earlier on Wednesday, Binance announced that Ethereum withdrawals had been disabled due to network congestion.
This issue has been increasingly painful over the past year as the network fails to handle the increasing volume, which has also resulted in high prices.
Coinbase, on the other hand, reported “intermittent downtime” on the platform, which they assure their users it was investigating.
The Service Outage’s Impact on the Market
Soon after the outages, Bitcoin experienced a drop of about $9k, reaching its lowest value since early February by going as far as reaching a $30k valuation, according to Coingecko data.
The drop represented a 30% loss in value and around $500 billion in its market capitalization, but the most popular cryptocurrency soon started recovering from the drop.
By the end of the day, Bitcoin had recovered by reaching the $38k mar, a similar value to the one it had before the sudden drop.
Ethereum suffered a similar fate by dropping from $2.7k to $2k in just an hour, just to start recovering as the situation normalized and investors jumped at the opportunity to…