• Binance’s Bitcoin (BTC) liquidity for its TrueUSD (TUSD) surged by more than 250% on March 22 after it phased out its zero-fee trading for other stablecoins.
• Kaiko Data researcher Riyad Carey highlighted that the exchange’s BTC liquidity for Binance USD (BUSD) and Tether’s USDT declined by 60% and 70%, respectively.
• Kaiko’s director of research, Clara Medalie, highlighted the role the zero-trading fee option played in improving Binance’s market share.

Binance Liquidity Surges for TrueUSD

Binance’s Bitcoin (BTC) liquidity for its TrueUSD (TUSD) rose more than 250% on March 22 after it phased out its zero-fee trading for other stablecoins. Kaiko Data researcher Riyad Carey highlighted that the exchange’s BTC liquidity for Binance USD (BUSD) and Tether’s USDT declined by 60% and 70%, respectively. Meanwhile, the exchange’s liquidity for TUSD increased to 29 BTC from 9 BTC within a few hours.

Zero Fee Option Helps Improve Market Share

Kaiko’s director of research, Clara Medalie, highlighted the role the zero-trading fee option played in improving Binance’s market share. According to Medalie, the free trading option helped Binance gain an additional 20% of the market since it was introduced in July 2022. At the time, Binance controlled only 50.5% of the market; however, the exchange’s market control increased to 72% following FTX’s collapse in November 2022. Additional information from Kaiko pointed out that the zero-trading option accounted for 61% of the total volume on Binance as of last week.

Impact of Decision on Other Stablecoins

With this decision from Binance comes a potential loss in users who were drawn to their platform due to their no-fee feature; these users may now choose to go elsewhere with another rival platform offering similar benefits or better prices on trades. With this move by Binance comes an apparent shift towards promoting TUSD as a successor to over stablecoins such as BUSD which have faced regulatory upheavals recently . Following this announcement from binance TUSD has been able to double is circulating supply and become second largest stablecoin on Tron network while also adding new trading pairs too..

Bennett Tomlin Comments

Protos‘ researcher Bennett Tomlin noted that TUSD is one of the few stablecoins designed explicitly with compliance protocols built into it — thus making it a viable alternative among traders looking to take advantage of low fees offered by exchanges like binance without worrying about any potential legal implications later down line..

Conclusion

In conclusion , with its move towards phasing out its no fee policy towards other stabecoin but opting instead to promote TrueUSd has allowed binance not only increase its liquidty but also given them an edge when compared competitors like FTX., allowing them capture large portion of crypto markt share