Zero Bitcoin Fees and USDC Delisting: How Binance Pushes for Greater Market Share
Crypto exchange Binance has recently continued to push for growth in its share of Bitcoin volume, as well as the stablecoin market.
Binance Zero Fees Lead to Big Increase in Bitcoin Trading Volume, Exchange Drops USDC Support
According to the latest weekly report from Arcane Research, the volume on Binance has remained significantly more than the rest of the market.
“Daily Trading Volume” is an indicator that measures the total amount of Bitcoin being transacted in spot markets on a given day.
When the value of this metric is high, it means that investors are moving a large number of coins on spot exchanges right now. Such a trend indicates that the market is active right now.
On the other hand, the indicator’s value being low means that there is not much market activity going on at the moment. This type of trend may suggest that general interest around the crypto is low at the moment.
Now, here is a chart showing the trend in Bitcoin trading volume for the crypto exchange Binance and that of the rest of the market:
The value of the metric seems to have been quite low for most of the market in recent days | Source: Arcane Research's The Weekly Update - Week 35, 2022
As you can see in the graph above, the 7-day average Bitcoin trading volumes on Binance have been much larger than those on other exchanges combined recently.
The reason behind these extraordinary volumes is the removal of fees by the exchange on all stablecoin BTC pairs back in the summer.
However, a large portion of these transactions are bound to be inorganic (that is, they simply come from those using high-volume trading strategies now that they have become viable), since the rest of the market has not seen any increase in activity whatsoever.
The exchange has also announced that it is now dropping support for USD Coin (USDC), a rival stablecoin to its own Binance USD (BUSD).
The report notes that these two policies are part of Binance’s aggressive push to gain more market share of both the Bitcoin volume and the stablecoin sector.
Although a large percentage of the new volumes are inorganic, the crypto exchange’s offensive push has still been successful due to the large increase in the share of the total Bitcoin trading volume.
BTC price
At the time of writing, Bitcoin’s price is hovering around $18.9k, down 6% in the last week.
Looks like the value of the crypto has plunged down over the past day | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research
