Binance Decision to Remove Zero Fees Causes Significant Drop in TrueUSD Trading Volume
Binance’s recent decision to eliminate zero fees for the BTC/TUSD trading pair had a major impact on the trading volume of TrueUSD (TUSD), according to Kaiko, a Paris-based data provider. Kaiko’s data reveals that the daily trading volume of the BTC/TUSD pair decreased by 88% from $636 million to $72 million shortly after Binance removed its zero-fee promotion on September 7. This decrease brought TUSD’s volume to its lowest level since the stablecoin was relisted on the exchange in early March 2023. Currently, the only trading pair on Binance with zero maker and taker fees is BTC-FDUSD.
Binance’s Zero-Fee Decision Boosts Tether and FDUSD Market Shares
Kaiko states that Binance’s decision to remove zero fees for TUSD on the platform has led to a positive impact on Tether’s dominance, increasing its market share to 80%. Meanwhile, TUSD’s market share has plummeted from over 30% to just 5.6%. Additionally, FDUSD’s market share has reached an all-time high of around 4%. Despite this increase, FDUSD remains one of the smallest stablecoins on Binance in terms of trade volume.
TUSD’s Troubles and Binance’s Response
Binance ended its zero-fee promotion for TUSD just a month after the stablecoin faced scrutiny due to issues with its provider, Prime Trust. In June 2023, TrueUSD temporarily halted the minting of TUSD tokens after Prime Trust was found to be insolvent and filed for bankruptcy in August 2023. The State of Nevada Department of Business and Industry revealed that Prime Trust had negative stock of over $12 million and used clients’ funds to cover withdrawals since December 2021.
Hot Take: Binance’s Zero-Fee Removal Impacts TrueUSD Volume While Boosting Tether and FDUSD
Binance’s recent decision to remove zero fees for the BTC/TUSD trading pair has had a significant effect on the trading volume of TrueUSD. The elimination of the zero-fee promotion led to an 88% drop in daily trading volume for the pair. As a result, TrueUSD reached its lowest volume level since being relisted on the exchange. On the other hand, Tether’s market share on the platform increased to 80%, while TrueUSD’s share collapsed. The move also boosted FDUSD’s market share to an all-time high, although it remains one of the smallest stablecoins in terms of trade volume on Binance. This decision came after TrueUSD faced scrutiny due to issues with its provider, Prime Trust.
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