binance The platform remains the world’s largest cryptocurrency exchange as measured by trading volume. Over the past several months, the exchange’s liquidity has increased significantly since the introduction of no-fee trading for bitcoin (B T c) Add.
This picture has changed a lot in the last five days.
Its market share in volume has dropped by 50% after Binance halted zero-fee bitcoin trading for 13 BTC pairs. The reversal has left Binance’s liquidity in a flux, digital asset research firm Caiko noted in a Updates on Monday, March 27.
Binance sees no fees BTC volume drop from 66% to less than 30%
On July 8, 2022, Binance City: Its zero fee promotion for bitcoin trading offers convenience in 13 BTC pairs. According to on-chain data shared by Kaiko, zero-fee trading volumes soared in the months following launch to account for the majority of Binance’s daily trading volume.
By mid-March 2023, the no fee daily volume for BTC increased to 66% of the total daily volume. Binance had 20% higher daily volume than rivals as incentivized users flocked to the exchange. However, since the exchange reinstated the fee the volume of all pairs resulting in bitcoin spot trading has fallen sharply.
Data as of March 27 shows that the halting of the zero-fee promotion has affected Binance’s market share in total volume. After reaching 66% this March, the exchange’s market share of bitcoin volume has dropped from over 50% to below 30%.
Binance’s Global Market Share Dropped 10% Last Week
The removal of no-fee trading for bitcoin has also affected Binance’s global market volume.
While Kaiko analysts said in a report shared with Invez that the 2-hour outage last week may have contributed to the scenario, there is no doubt that the reintroduction of trading fees is a factor that has pushed Binance higher in the past week. saw a 10% decline in its global share.
The BTC/USDT pair was the most affected, with a 90% drop in volume
The trading pair most affected by last week’s reversal is the BTC/USDT pair. According to analysts at Caco, the average volume lanyardThe most liquid cryptocurrency market has shrunk by 90%.
While Binance ended no-fee trading for many BTC pairs, it introduced the feature for the stablecoin TrueUSD (TUSD, In doing so, it has boosted the BTC/TUSD pair, with hourly volume increasing by almost $5 million on average. However, the zero fee volume for the BTC/TUSD pair is only 2.8% of the total volume.