According to Kaiko’s head of research, Binance’s market share may drop after the world’s largest crypto exchange by trading volume removes most of its zero-fee trading. Meanwhile, Binance continues to support the stablecoin True USD (TUSD), one of the popular altcoin projects. Here are the details…
Binance has this altcoin in focus
Binance phased out free Bitcoin (BTC) trading with several asset pairs on Wednesday, keeping only the TrueUSD (TUSD) stablecoin promotion. According to some, the decision of altcoin exchange Binance could herald a major change for centralized crypto exchanges and end Binance’s dominance. According to Kaiko data, zero-fee trading pairs represent around 60 percent of all trading volume on the platform. It could also underline TUSD’s status as Binance’s preferred stablecoin.
After launching zero-fee trading for some BTC pairs around the world last summer, Binance has snatched a significant share of its competitors amid a stalemate where exchanges have been grappling with low trading volumes and declining revenues. Clara Medalie, director of research at crypto market data provider Kaiko, highlighted that this measure helped Binance increase its market share to 72 percent from 50 percent last July. Medalie used the following expressions:
Zero commission trading is unsustainable in the long run, but it has enabled Binance to gain massive market share in the short run. With zero fees for most BTC pairs, we can expect a short-term drop in market share.
How did TrueUSD come about?
cryptocoin.com As we reported, TrueUSD’s reputation has improved after regulators took drastic measures against Binance USD (BUSD). Paxos, the firm that issues BUSD under the exchange’s brand, received an order last month from the New York Department of Financial Services (NYDFS) to liquidate the stablecoin. Then, the supply of BUSD fell rapidly from $16 billion to $8 billion. According to CoinGecko data, the market cap of TUSD has more than doubled since the announcement of the phase-out of BUSD, exceeding $2 billion.
The stablecoin is managed by Archblock, formerly known as TrustToken, and its intellectual property has been acquired by Techteryx, a little-known Asian investment firm. Reports claimed that crypto billionaire and Tron founder Justin Sun may be behind TUSD, but the firm has previously denied the allegations. Dustin Teander, an analyst at crypto research firm Messari, said that BTC-TUSD trading volume has increased tenfold recently compared to Tuesday.
TUSD could become the biggest market
However, he added that the asset pair’s $50 million in spot trading volume over the past 24 hours is dwarfed by the $6 billion volume of the dominant stablecoin USDT and the $1 billion volume of BUSD. Mike van Rossum, founder of crypto trading firm Folkvang, stated that it is too early to say how much Binance wants to push TUSD as the “de facto standard” on its platform. He added that the removal of transaction fees is a powerful tool. “If people eventually trust TUSD, it could easily become the largest market by volume with this zero-fee promotion,” he said.
A Binance spokesperson said the exchange’s goal is to “identify a variety of stablecoin products currently to offer users products that have strong relationships with banking institutions, particularly in markets that are transparent, regulated, and support innovation.” “TUSD will be the first of many new stablecoin products available to users,” the spokesperson added. The stablecoin market was in turmoil earlier this month when several US banks with close ties to crypto companies were shut down by regulators after a surge in deposits. Binance resumed trading with USDC, USDP and TUSD stablecoins last week after delisting on the platform and automatically converting deposits to BUSD last September.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.