Binance witnessed share of daily Bitcoin spot trading volume contract from 66% to under 30%
Binance’s trading volume in mid-March due to Zero-fee trade volume stood at 60% before collapsing under 30%. Binance is the world’s largest cryptocurrency exchange platform by trading volume. Introduction of no-fee trading for Bitcoin (BTC) pairs boosted the exchange’s liquidity.
However, on Sunday, the exchange recorded its lowest bitcoin trading volume since July 4,2022 according to data from Kaiko. The move came after Binance halted the zero-fee bitcoin trading for 13 BTC pairs; the market share of the volume has fallen by 50%. The exchange’s global market share, which once peaked over 70%, has dropped to about 58%.
Binance introduced its zero fees promotion for bitcoin trading on July 8, 2022, providing the features across 13 BTC pairs. In the mid-March 2023, the no fee daily volume for BTC surged 66% of total daily volume. In the previous week, Binance ruled out zero-fee trading last week, with the exception of the trueUSD (TUSD) stablecoin.
Kaiko analysts reported that a 2-hour outage last week could have contributed to the scenario, no doubt reintroducing trading fees is one factor that saw Binance’s global share fall by 10% in the last week.
The BTC/USDT pair is the most impacted by last week’s development. Further, the average volume for Tether , cryptocurrency’s most liquid market, has squeezed a massive 90%
