Binance Introduces Zero-Fee Trading Program
Binance, the world’s largest crypto exchange, has recently added the BTC/FDUSD and ETH/FDUSD trading pairs to its zero-fee trading program. This program aims to increase trading volumes between stablecoin pairs, and it includes FDUSD, a 1:1 USD stablecoin issued on the BNB smart chain by First Digital, a licensed trust company based in Hong Kong. With this initiative, users can now buy and sell supported cryptocurrencies using FDUSD without incurring any transaction fees.
Details of the Zero-Fee Trading Program
Starting from August 8, users will enjoy zero maker and taker fees on the BTC/FDUSD spot and margin trading pairs. Additionally, all FDUSD spot and margin trading pairs will have zero maker fees, but standard fees based on the existing trading structure will still apply to takers.
The Potential Impact On Prices
Binance’s decision to waive trading fees has the potential to significantly impact the prices of Bitcoin and Ethereum. Being the world’s largest crypto exchange, Binance holds considerable influence over the crypto market. In the past, fee reductions and zero-fee promotions by Binance have led to price pumps and increased trading volume for the involved cryptocurrencies, albeit temporarily.
Currently, Bitcoin is trading just below $30,000, and the introduction of new money and traders could potentially push its price higher. Similarly, Ethereum, which is currently ranging around $1,800, might also experience a boost in price due to increased trading activity.
Another noteworthy effect of the zero-fee trading program is that investors can now freely move their funds in and out of stablecoins to capitalize on arbitrage opportunities across different exchanges or trade pairs.
Previous Instances of Fee Reduction Impact
In March, Binance implemented zero maker and taker fees on the BTC-TUSD trading pair. As a result, the TUSD stablecoin saw a massive surge in trading volume, exceeding $1 billion in less than 24 hours. During the same period, the BTC-TUSD pair on Binance alone reached a trading volume of over $700 million.
Conclusion
While it remains unclear when the zero-fee trading promotion will end for the BTC/FDUSD and ETH/FDUSD trading pairs, it is expected to increase the volume of FDUSD being traded on the exchange. Traders and investors will closely monitor the price movements of Bitcoin and Ethereum during this period to assess the potential long-term impact of Binance’s zero-fee trading program on the crypto market.
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