Expanding Trading Pairs: Binance Adds DOGE, SOL, TOMO, UNFI, and XRP
Binance, the global leader in cryptocurrency trading volume, has expanded its menu of trading pairs. As of September 7, 2023, at 08:00 UTC, the new pairs will include Dogecoin (DOGE), Solana (SOL), TomoChain (TOMO), Unifi Protocol DAO (UNFI), and Ripple’s XRP. These pairs will be traded with FDUSD, a newly introduced stablecoin.
XRP’s Growing Popularity: Attention Shifts to XRP Price
XRP has gained significant attention on Binance, positioning itself just behind Coinbase in terms of purchasing activity. With the addition of the XRP/FDUSD trading pair, Binance now offers a total of 14 spot trading pairs for XRP. Currently trading at $0.503, XRP has experienced a slight 0.4% dip in the last 24 hours. The question now is whether this new trading pair will trigger an XRP resurgence.
A Deep Dive into FDUSD
FDUSD, or First Digital USD, is a dollar-pegged stablecoin launched by Hong Kong-based firm First Digital in June. Despite its recent entry, FDUSD has already become the 11th largest stablecoin by market capitalization, valued at approximately $393.7 million. Available on Ethereum and BNB Chain Networks, FDUSD is expected to see significant valuation gains due to Binance’s latest move.
The Attraction of Zero Maker Fees
Binance has attracted traders by announcing zero maker fees for the new FDUSD trading pairs. This strategy has historically boosted liquidity. While competitors like Coinbase have used zero fees in the past, the temporary nature of Binance’s offer has left traders eager but cautious. It remains to be seen how long this incentive will last and its impact on FDUSD’s market activity.
TRY: A Fiat Currency Trading Pair
Besides FDUSD pairs, Binance has introduced two new trading pairs with Turkish Lira (TRY): TOMO/TRY and UNFI/TRY. Binance explicitly stated that TRY is a fiat currency to avoid any confusion with digital assets.
Hot Take: Increased Trading Volume Doesn’t Guarantee Price Inflation
While the new trading pairs and fee structures by Binance will boost trading volume, it is important to note that higher liquidity doesn’t always lead to asset price inflation!
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