Cryptocurrency exchange Binance’s announcement of upcoming updates to its zero-fee Bitcoin trading program, effective from September 7, has raised concerns of a potential market downturn similar to the one witnessed in March. The move recalls memories of a 90% trading volume plunge following Binance’s decision to discontinue zero-fee trading earlier this year.
Binance’s official statement revealed its plans to modify the zero-fee Bitcoin trading program, particularly impacting the Bitcoin/True USD (TUSD) spot and margin trading pair. Previously, traders enjoyed feeless trading on BTC/TUSD pairs, but this update introduces regular taker fees based on the user’s VIP level. However, no maker fees will be applied to Bitcoin trades within the BTC/TUSD spot and margin trading pair.
The adjustment signals a potential waning support for TUSD stablecoin due to various concerns. Although users will still benefit from zero maker and taker fees in Bitcoin trading within the FDUSD spot and margin trading pair, the shift from TUSD to lesser-known FDUSD has raised questions about market dynamics.
CoinMarketCap data shows that BTC/TUSD and BTC/USDT pairs account for significant Bitcoin trading volumes, constituting 11% and 7% respectively. Binance’s prior discontinuation of support for BUSD led to a drop in trading volume for Tether (USDT) pairs. Now, the redirection of attention to FDUSD raises concerns about potential selloffs and market instability.
While the effects are yet to fully unfold, Binance’s modification to its zero-fee Bitcoin trading program for BTC/TUSD spot and margin trading pairs has ignited speculation about the market echoing the downturn experienced in March. The spotlight now rests on how traders and investors will navigate this change amidst the broader crypto landscape.