Binance, the world’s largest cryptocurrency exchange, recently announced that it would no longer support BUSD and TUSD stablecoins due to regulatory challenges. This decision has sparked positive sentiment among traders and has led to an increase in the market share of Tether (USDT) on Binance. According to data from Kaiko, USDT’s market share is rising again, which could indicate the beginning of a Bitcoin and cryptocurrency market rally.
The market share of TrueUSD (TUSD) on Binance has significantly decreased from over 30% to just 5.6%, as reported by digital assets data provider Kaiko. The daily trading volume of TUSD stablecoin has even fallen below that of BUSD, which Binance plans to stop supporting in early 2024.
CoinGape Media accurately predicted a crypto market selloff in September when Binance made changes to its zero-fee Bitcoin trading for BTC/TUSD spot and margin trading pair. Traders have since moved away from TUSD as they now have to pay a taker fee, which is no longer free.
The Benefits of Increased USDT Trading Volume on Binance
Binance’s reduction in support for TrueUSD and its zero-fee Bitcoin trading program for TUSD have raised concerns about the stability of the TUSD stablecoin. Increasing USDT trading volume can help mitigate these risks and restore lost trading volume on Binance. It can also bring positive momentum to the cryptocurrency market and address liquidity issues. Analysts are already optimistic about the start of a bullish cycle as Bitcoin price remains above $26,000.
Hot Take: The Start of a Bullish Cycle for Bitcoin?
According to cryptocurrency analyst Michaël van de Poppe, the Bitcoin price may be ready to start a bull cycle. As long as it holds above the 200-Week Exponential Moving Average (EMA), it is considered a good period to accumulate altcoins. This positive sentiment, combined with the increasing USDT market share on Binance, could potentially lead to a rally in the crypto market.
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