Why is Mina Coin Rising? Why are Withdrawals Suspended? Should You Buy Mina? - COINTURK NEWS
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Why is Mina Coin Rising? Why are Withdrawals Suspended? Should You Buy Mina?

2:03 pm (43 days ago)
October 24, 2023

We made a few evaluations about Mina Coin when the price was at its all-time low. Although the psychological pressure of the cryptocurrency market is challenging, you can see that all the depression is forgotten once the price starts to rise. Just a few weeks ago, Mina was at its all-time low and now it is aiming for $1.

Why is Mina Coin Rising?

First of all, we mentioned that Mina Coin is very advantageous due to its low-sized blocks and minimum system requirements for nodes. We also talked about the system where everyone can run a node in their browser and the narrative of massive security and decentralization that this brings. Mina Coin is transitioning from a high inflation period to a slowly decreasing inflation period.

On the other hand, although it does not have smart contract capabilities yet, Mina is receiving great attention. This was also a precursor signal of the demand it will receive after its mainnet.

So, why did the rise happen today? The listing on Upbit exchange caused an increase in the price of Mina. As the Asian markets opened after yesterday’s breaking of the downtrend, BTC reached $35,000. Meanwhile, the Upbit listing was announced. These consecutive events had a multiplier effect on the price of Mina.

Upbit is a South Korean exchange and investors in the region are trading here. Since it is a regulated exchange and there is no alternative in the region, Asian investors have been showing massive interest in newly listed altcoins here for a long time. This is what we experienced with Cyber and many other altcoins. Upbit lists, Binance opens futures trading, and the price of the relevant altcoin skyrockets.

So, should you buy Mina today? The price on Upbit exchange is inflated, approaching $2, and BTC may make a pullback after testing its last resistance. For those who did not take bold action at the ATL level, the risk they would take now, when the price has increased by more than 100%, may force them to hodl for a long time.

Why are Mina Withdrawals Suspended?

Yesterday, those who wanted to withdraw had to wait for more than an hour because the network confirmations had slowed down due to excessive congestion. Now, due to the arbitrage opportunities arising from the price increase and investors looking to take profits, there is a significant congestion in the network. This also causes transfers to take much longer.

Due to the abnormal delays in transfers, exchanges have restricted balance deposits and withdrawals.

A user named talhaB62 from the Mina community said the following;

“The unexpectedly increasing number of transfers on the network due to the price movement has led to a sudden increase in the need for snarks, and snarkworkers that have been quiet for a long time were shocked. Additionally, some blocks could not be produced because they couldn’t find snarks, which further increased the accumulation of pending transfers on the network.

But as the need for snarks increased, snarkworkers accelerated production and started to solve the problem slowly. This situation, which we haven’t experienced much due to the low onchain activity and some bp and snarkworkers evaluating their devices in #Testworld2, will not easily happen in the network that we expect to be constantly busy after zkApps.

Currently, many exchanges have temporarily closed deposits to avoid making individual announcements to their members, but they will reopen soon.

You can see the increasing snark production and the increasing ratio of snarks that snarkworkers earn money from on the Mina Explorer graph. These shocks are very positive for the zk-filled future. Node operators I know have started producing snarks with their idle devices due to today’s snark demand.”

Disclaimer: The information in this article does not constitute investment advice. Investors should be aware of the high volatility and therefore the risks associated with cryptocurrency units and should conduct their transactions based on their own research.

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