Binance, a prominent cryptocurrency exchange, recently announced its forthcoming adjustment to the zero-fee Bitcoin trading program on August 24, a move that could potentially trigger a considerable market downturn akin to the significant trading volume slump of around 90% witnessed after Binance terminated zero-fee trading in March.
The exchange’s official statement disclosed plans to implement updates to the zero-fee Bitcoin trading, effective from September 7.
Binance’s focus is on modifying the zero-fee trading model for the Bitcoin True USD (TUSD) spot and margin trading pair.
Previously, traders enjoyed fee-free transactions, both as makers and takers, when participating in BTC trading with TUSD pairs. However, changes are afoot.
A standard taker fee will soon be in place, determined by the user’s VIP level.
That said, users will continue to encounter zero maker fees when conducting Bitcoin trades using the BTC/TUSD spot and margin trading pair.
Furthermore, the trading volume corresponding to the BTC/TUSD spot and margin trading pair will now factor into VIP tier calculations and various Liquidity Provider programs.
BNB discounts, referral rebates, and other fee adjustments will also apply once again to BTC/TUSD spot and margin trading volumes.
The decision to discontinue the zero-fee Bitcoin trading initiative for TUSD suggests waning support for the TUSD stablecoin due to various apprehensions.
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Nevertheless, users will still benefit from zero maker and taker fees when engaging in Bitcoin trading through the FDUSD spot and margin trading pair.
Binance’s modification of the zero-fee Bitcoin trading arrangement for the BTC/TUSD spot and margin trading pair could inadvertently stimulate a fresh round of market selloffs.
CoinMarketCap data indicates that BTC/TUSD and BTC/USDT pairs are the most frequented options for Bitcoin trading, accounting for 11% and 7% respectively.
After Binance’s shift from BUSD to TUSD as the exclusive trading pair for zero-fee Bitcoin trading, trading volume in Tether (USDT) pairs plummeted considerably.
Once more, the exchange is steering attention away from the widely traded TUSD to the lesser-known FDUSD stablecoin.
Notably, FDUSD fails to secure a spot among the top 10 Bitcoin pairs by trading volume, and its market capitalization stands at $324 million.
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