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

cointelegraph.com:

Amid the ongoing spike in Bitcoin (BTC) transaction fees, some cryptocurrency exchanges have moved to adjust the cost of withdrawing BTC from their platforms.

The United States-based exchange Kraken has increased Bitcoin withdrawal fees to match the current fees on-chain, the company’s customer support manager wrote on Reddit on May 10.

“This helps ensure withdrawals are processed on-chain in a timely manner,” the support manager noted.

Kraken’s representative also referred to the company’s public list of cryptocurrency withdrawal fees and minimum withdrawal amounts. According to the data, Kraken charges 0.00035 BTC, or about $10, for a Bitcoin withdrawal, with a minimum amount of 0.0005 BTC, or $13.

The minimum BTC withdrawal amount on LN also significantly differs from non-Lightning BTC, starting from as low as 0.00001 BTC, or less than $1.

The support manager also advised customers to consider using Lightning Network (LN) as an alternative. Adopted by Kraken in March 2022, the LN option allows users to withdraw BTC from the platform free of charge.

Kraken’s public withdrawal fees are significantly smaller than those of other major exchanges. Crypto exchange OKX charges between 0.00096 BTC ($26) up to 0.00192 BTC ($53) for a Bitcoin withdrawal, a spokesperson for OKX told Cointelegraph. The minimum withdrawal amount is 0.001 BTC, or $27.

OKX declined to comment on whether the exchange will increase withdrawal fees due to skyrocketing Bitcoin transaction costs. The platform also implemented LN in 2022 though.

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

Crypto exchange KuCoin uses dynamic adjustment for BTC withdrawal fees and minimum withdrawal amounts, a