Leading cryptocurrency exchange Binance revealed its intention to overhaul the zero-fee Bitcoin trading structure on August 24. This action could be compared to the abrupt 90% drop in trading volume that was observed after Binance stopped offering zero-fee trading in March.
Binance publicly announced its choice to begin September 7 with an update to the no-fee Bitcoin trading system. With regard to spot and margin trading, they will specifically modify the zero-fee trading structure for Bitcoin (BTC), which has a price of $26,035, when matched with True USD (TUSD).
Prior to this modification, trading BTC with TUSD pairs was free of maker and taker costs. A standard taker cost based on the user’s VIP status will be applied going future. Maker costs won’t apply to the BTC/TUSD spot or margin trading pair, though.
The volume will be taken into account for all Liquidity Provider schemes and the user’s VIP tier calculations for transactions involving the BTC/TUSD spot and margin trading pair. The volume of BTC/TUSD trading will also once more be subject to BNB discounts, referral bonuses, and other fee adjustments.
It seems like Binance is gradually withdrawing its support for zero-fee Bitcoin trading with TUSD, indicating waning faith in the TUSD stablecoin for a number of reasons. Trading Bitcoin in conjunction with the FDUSD spot and margin trading pair, however, will continue to be free for both makers and takers.
This modification to Binance’s fee policy for trading BTC/TUSD could unwittingly lead to another market sell-off.
According to data from CoinMarketCap, the BTC/TUSD and BTC/USDT combinations are the most frequently traded Bitcoin pairs, accounting for 11% and 7% of all transactions, respectively. After Binance stopped supporting BUSD and started only recognizing TUSD for fee-free Bitcoin trades, the volume of trading in Tether (USDT) pairs significantly decreased.
The less well-known FDUSD stablecoin appears to be receiving more attention from Binance than the well-known TUSD stablecoin. It’s important to remember that FDUSD has a market cap of $324 million right now and isn’t among the top 10 Bitcoin pairs by volume.