Binance’s Zero-fee Bitcoin Update Could Spell March-like Market Downturn

Binance Zero Fee

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Binance, a prominent cryptocurrency exchange, has formally announced its upcoming alterations to the zero-fee Bitcoin trading, effective from September 7th. 

This decision, reminiscent of a similar event in March that led to a substantial 90% reduction in trading volume, holds the potential to significantly impact the market once again.

As disclosed on August 24th, Binance is set to modify the zero-fee Bitcoin trading program specifically for the BTC/TUSD spot and margin trading pair. 

Previously, users enjoyed the benefit of zero maker and taker fees when engaging in BTC trading with TUSD pairs. 

However, the impending change will introduce a regular taker fee, which will vary based on the user’s VIP level. Nevertheless, participants will pay zero maker fees when dealing with Bitcoin trades within the BTC/TUSD spot and margin trading pair.

According to Binance:

“The corresponding trading volume on the BTC/TUSD spot and margin trading pair will count toward VIP tier calculation and all Liquidity Provider programs. In addition, BNB discounts, referral rebates, and any other fee adjustments will resume for BTC/TUSD spot and margin trading volumes.”

This shift could signify waning support for the TrueUSD (TUSD) stablecoin, possibly due to mounting concerns. Yet, it’s important to note that users will maintain the privilege of zero maker and taker fees for Bitcoin trading within the First Digital USD (FDUSD) spot and margin trading pair.

The adjustment’s repercussions could unintentionally spark another round of market selloffs. 

According to CoinMarketCap, the BTC/TUSD and BTC/USDT pairs are among the most actively traded for Bitcoin, constituting 11% and 7% of trading, respectively. 

The alteration mirrors Binance’s prior strategy of steering attention away from the widely utilized TUSD towards the less-established FDUSD stablecoin, which, interestingly, does not rank among the top 10 Bitcoin pairs by trading volume, boasting a market capitalization of $324 million.