Daily News 19

Tag: Network upgrade

  • Binance Announces Support for Altcoin Network Upgrade

    Binance Announces Support for Altcoin Network Upgrade

    Key Highlights

    • Binance will suspend LUNA deposits and withdrawals on September 21, 2026, at approximately 5:00 PM UTC to support the Terra network upgrade at block height 22,942,000.
    • Spot trading and other market transactions for Terra-based tokens will remain fully operational during the upgrade window.
    • Binance will manage all technical requirements on behalf of users; deposits and withdrawals will resume automatically once the network is confirmed stable, with no separate announcement planned.

    Binance Prepares for Terra Network Upgrade with Temporary Transfer Pause

    Global cryptocurrency exchange Binance has confirmed its support for an upcoming network upgrade on the Terra (LUNA) blockchain, implementing a temporary suspension of deposit and withdrawal services to ensure the transition proceeds securely for its user base. The move aligns with standard industry practice for major blockchain protocol upgrades, where centralized exchanges pause on-chain transfers to mitigate risks such as transaction failures, chain splits, or replay attacks during the migration.

    Upgrade Timeline and Operational Impact

    According to the official announcement, deposit and withdrawal operations via the Terra network are scheduled to be halted on September 21, 2026, at approximately 5:00 PM UTC. The Terra network upgrade itself is expected to activate roughly one hour later, at block height 22,942,000, at approximately 6:00 PM UTC. This buffer allows Binance to finalize internal node updates and validate network stability before the protocol change takes effect.

    Critically, the suspension applies exclusively to on-chain deposit and withdrawal transactions. The exchange emphasized that spot trading and all other market operations for Terra-based tokens will continue without interruption. Users retain full ability to buy, sell, and trade LUNA and associated assets on Binance markets throughout the upgrade period.

    User Experience and Technical Management

    Binance has stated that it will execute all necessary technical procedures on behalf of its customers, including node software updates and any required consensus participation. No action is required from users during this process. The exchange’s infrastructure team will monitor the upgrade in real time, validating block production, finality, and network health before re-enabling transfer services.

    The announcement did not specify a fixed resumption time for deposits and withdrawals. Instead, Binance indicated that services will be restored once the Terra network is assessed to be operating stably and securely following the upgrade’s completion. Notably, the exchange confirmed it will not issue a separate announcement regarding the reopening of these operations. Users are advised to monitor their account interfaces directly for the restoration of transfer functionality and to anticipate potential delays as the network settles.

    Why This Matters

    Network upgrades are pivotal events for proof-of-stake blockchains like Terra, often introducing protocol improvements, security patches, or governance changes. For exchanges, supporting these upgrades is a core operational responsibility that balances user asset safety with service continuity. Binance’s decision to pause only on-chain transfers—while keeping markets live—reflects a mature risk management approach: it prevents users from sending funds into a potentially unstable chain state while preserving liquidity and price discovery. The absence of a follow-up resumption announcement places the onus on users to verify service status proactively, a common practice among major exchanges during non-contentious upgrades. As Terra continues to evolve its ecosystem, seamless exchange support remains critical for maintaining token accessibility and investor confidence.

    Frequently Asked Questions

    Will I be able to trade LUNA on Binance during the upgrade?

    Yes. Binance confirmed that spot trading and all other market transactions for Terra network tokens will remain fully operational throughout the upgrade window. Only deposit and withdrawal functions via the Terra blockchain are temporarily suspended.

    Do I need to take any action with my LUNA holdings on Binance?

    No. Binance will handle all technical requirements for the network upgrade on behalf of users. No manual steps—such as token swaps, wallet migrations, or consensus participation—are required from account holders.

    How will I know when deposits and withdrawals are available again?

    Binance stated it will not publish a separate announcement for the resumption of transfer services. Users should monitor the deposit and withdrawal pages within their Binance accounts directly; functionality will be restored automatically once the exchange confirms the Terra network is stable and secure post-upgrade.

  • Binance Announces Support for Terra Network, LUNA Price Surges 15%

    Binance Announces Support for Terra Network, LUNA Price Surges 15%

    Key Highlights

    • Binance, the world’s largest cryptocurrency exchange by trading volume, announced support for the upcoming Terra (LUNA) network upgrade on Monday.
    • LUNA token price surged following the announcement, extending its weekly gains to nearly 30% as market sentiment improved.
    • The exchange’s backing signals significant institutional confidence in the Terra ecosystem’s technical roadmap and long-term viability.

    Binance Commits Support for Terra Network Upgrade

    The world’s largest cryptocurrency exchange, Binance, confirmed on Monday that it will support the impending Terra (LUNA) network upgrade, a move that triggered an immediate positive price response for the native token. The announcement, made through the exchange’s official channels, outlines technical readiness for the protocol transition, including the suspension of deposits and withdrawals during the upgrade window to ensure user fund safety.

    According to the exchange’s statement, Binance will handle all technical requirements involved in the network upgrade for LUNA holders on its platform, eliminating the need for individual users to take manual action. This custodial support is particularly significant for retail investors who may lack the technical expertise to navigate mainnet transitions independently.

    Market Reaction Drives LUNA Weekly Gains Near 30%

    Following the Binance announcement, the LUNA token experienced a sharp price appreciation, extending its weekly performance to gains of almost 30%. The surge reflects renewed market confidence in the Terra ecosystem after a period of heightened volatility and uncertainty surrounding the project’s technical direction. Trading volumes across major pairs spiked in tandem, indicating strong buyer interest catalyzed by the exchange’s endorsement.

    Analysts suggest that support from a Tier-1 exchange like Binance serves as a critical validation signal for blockchain projects undergoing major protocol changes. The exchange’s rigorous due diligence process before announcing support for network upgrades typically reassures market participants about the technical soundness and security of the proposed changes.

    Why This Matters: Institutional Backing Stabilizes Terra Ecosystem

    The Terra network has been navigating a complex recovery phase following the historic collapse of its algorithmic stablecoin UST and the original LUNA token in May 2022. The current LUNA token, often referred to as LUNA 2.0, operates on a revived chain with a revised governance model and tokenomics. Major exchange support for protocol upgrades is a key milestone in re-establishing infrastructure reliability and developer confidence.

    Binance’s participation reduces fragmentation risk during the upgrade, ensuring liquidity continuity and minimizing the potential for chain splits or user confusion. For the broader cryptocurrency market, the event underscores the pivotal role centralized exchanges play in the governance and operational stability of proof-of-stake networks, particularly during critical consensus changes.

    Frequently Asked Questions

    What does Binance supporting the Terra network upgrade mean for LUNA holders on the exchange?

    LUNA holders on Binance do not need to take any action. The exchange will manage all technical aspects of the upgrade, including token swaps or mainnet transitions, and will temporarily pause deposits and withdrawals during the process to protect user assets.

    Why did LUNA price increase nearly 30% weekly after this announcement?

    The price surge reflects restored market confidence. Support from the world’s largest crypto exchange validates the upgrade’s technical credibility and reduces execution risk, encouraging both retail and institutional buying interest.

    Is this upgrade related to the 2022 Terra collapse?

    This upgrade pertains to the current Terra 2.0 chain (LUNA), which launched after the 2022 collapse of the original Terra Classic (LUNC) and UST. It represents ongoing development of the revived ecosystem, not a remediation of the prior failure.

  • Solana Tests $100 Support as Whale Traders Bet on Price Rebound

    Solana Tests $100 Support as Whale Traders Bet on Price Rebound

    Solana (SOL) slipped 2% on Tuesday, trading near $102, yet a cluster of large derivatives traders is positioning for a continuation of the asset’s recent recovery. Five whale addresses on Hyperliquid collectively opened $9.11 million in SOL long positions between September 7 and September 8, according to CoinGlass data.

    Whale Long Positions Signal Confidence Ahead of Network Upgrade

    The concentrated bullish exposure suggests these traders expect Solana to extend the rebound that began on August 17. Their combined $9.11 million commitment reflects confidence that the upcoming network improvement could spark renewed buying demand. Long positions profit when the underlying asset rises, though they carry liquidation risk if SOL resumes its decline. While the activity of a few large traders does not guarantee a rally, sizable whale moves often influence sentiment, especially ahead of a major protocol change.

    Solana’s September 9 Upgrade Expands Transaction Capacity

    The scheduled upgrade will raise the maximum transaction size from 1,232 bytes to 4,096 bytes. This increase allows developers to pack more instructions into a single operation, bundling processes that previously required multiple separate transactions. By more than tripling the size limit, Solana aims to support more complex applications and reduce the need to split related instructions across several transactions.

    Additional context on the upgrade can be found in this post by Scott Melker.

    Broader Derivatives Metrics Remain Bearish

    Despite the whale long positions, Solana’s wider futures market continues to show caution. SOL’s funding rate sits at a positive 0.0025%, meaning long holders are paying shorts to maintain their trades — a sign of stronger demand for bullish positions. However, the long-to-short ratio stands at 0.94, indicating short accounts outnumber long accounts. This reading reinforces the view that the five Hyperliquid whales are taking a contrarian stance against prevailing futures sentiment.

    Demand for SOL derivatives has also weakened. Trading volume fell 10% to $6.58 billion, while open interest declined 1.21% to $6.47 billion. Lower volume signals reduced trading activity, and declining open interest shows leveraged positions are being closed. Together, these metrics suggest futures traders are reducing exposure as SOL approaches its upgrade.

    Institutional Demand Paints a More Constructive Picture

    On the institutional side, Solana exchange-traded funds have recorded inflows for ten consecutive weeks. This streak indicates that demand through regulated investment products remains resilient despite weaker futures activity. The result is a divided market outlook: whale positioning and ETF inflows favor an eventual recovery, while negative funding, falling open interest, and a sub‑one long‑to‑short ratio point to short‑term caution. SOL’s reaction to the September 9 upgrade could determine which side gains control.

    Technical Analysis: Symmetrical Triangle Points to $124 Resistance or $84 Support

    On the four‑hour chart, SOL is trading within a symmetrical triangle — a pattern that reflects tightening price action and can break out in either direction. The formation’s projected height is approximately 16%. A decisive break below the lower trendline could send SOL down a similar percentage toward $84. Before that target comes into view, sellers would need to push price below the psychological support at $100.

    Conversely, a clear move above the triangle resistance at $107 could trigger a 16% rally toward $124. Momentum currently leans toward sellers: the Relative Strength Index sits at 44, below the neutral 50 level, and its lower lows indicate growing selling pressure. Solana’s immediate outlook therefore hinges on the triangle’s boundaries. Holding $100 and breaking above $107 would strengthen the whale‑backed bullish scenario, while losing triangle support could expose SOL to a decline toward $84.