Binance, the world’s largest crypto exchange, recently added the BTC/FDUSD and ETH/FDUSD trading pairs to its zero-fee trading program. Binance recently listed FDUSD, a 1:1 USD stablecoin on the BNB smart chain issued by Hong Kong-based licensed trust company, First Digital. With the new zero-fee trading program, users can buy and sell supported cryptocurrencies using FDUSD without paying transaction fees. 

Binance Introduces Zero-Fee Trading Program

The zero-fee trading program is part of Binance’s efforts to increase trading volumes between stablecoin pairs. The company currently has a zero-fee bitcoin trading & BUSD zero maker fee promotion for supported stablecoins. With its latest move, Binance is adding FDUSD to the fray of supported stablecoins on both spot & margin trading pairs.

#Binance adds #BTC / $FDUSD and $ETH / $FDUSD trading pairs and updates the zero-fee Bitcoin Trading Program.

Find out more https://t.co/g6Elnd77d9

— Binance (@binance) August 3, 2023

Taker fees are paid when the trade order is executed, while maker fees are paid when users make limit orders. According to the announcement on its blog, starting August 8, users will be able to enjoy zero maker and taker fees on the BTC/FDUSD spot and margin trading pairs. 

Users will also enjoy zero maker fees on all FDUSD spot and margin trading pairs, but takers will continue to pay standard fees based on the existing trading structure. 

The Potential Impact On Prices

Binance’s announcement to waive trading fees could significantly impact the prices of Bitcoin and Ethereum. As the world’s largest crypto exchange, Binance wields a lot of influence over the crypto market. In the past, Binance’s fee reductions and zero-fee promotions have preceded price pumps and increases in trading volume for the included cryptocurrencies, even if they are only temporary.

Bitcoin, on its own, seems to have found a footing just below $30,000, but the influx of new money and traders could support a higher price push for Bitcoin. The same goes for Ethereum, which is currently ranging around $1,800.

BTC price could benefit from zero fees on Binance | Source: BTCUSD on Tradingview.com

With no trading fees, investors can also move money in and out of stablecoins freely to take advantage of arbitrage opportunities across exchanges or trade pairs. 

In March, Binance’s decided to implement zero maker and taker fees on the BTC-TUSD. As a result, the TUSD stablecoin surged 10x in trading volume, surpassing $1 billion in less than 24 hours. During this time period, the BTC-TUSD pair on Binance alone exceeded $700 million in trading volume. 

It is unclear when the zero-fee trading promotion will end on the BTC/FDUSD and ETH/FDUSD trading pairs, but it is expected to increase the volume of FDUSD being traded on the exchange.

Featured image from iStock, chart from Tradingview.com

The world’s largest crypto exchange Binance on Thursday announced zero-free Bitcoin and Ethereum trading with newly added FDUSD stablecoin spot and margin pairs. Crypto, including Bitcoin (BTC) and Ethereum (ETH), prices remained under pressure after Binance ended the zero-fee trading for all trading pairs except TrueUSD (TUSD) in March end.

Binance Seeks to Improve Market Shares With FDUSD

Binance adds Bitcoin and Ethereum with FDUSD spot and margin trading pairs and introduces zero-fee trading for BTC/FDUSD trading pair, according to an announcement on August 3.

Users will enjoy zero maker and taker fees for BTC/FDUSD spot and margin under the Zero Fee Bitcoin Trading Program from 08:00 UTC on August 4. In addition, users can trade ETH/FDUSD with zero maker fee, with standard taker fee applicable as per user’s VIP level.

The trading volume on the BTC/FDUSD spot and margin trading pairs is excluded from the VIP tier volume calculation and all Liquidity Providers program. Thus, providing users with a better trading experience.

“BNB discounts, referral rebates, and any other adjustments will not apply to the BTC/FDUSD spot and margin trading pairs during the promotion.”

Binance ended its zero-fee Bitcoin trading program and BUSD zero-maker fee promotion in March and switch from BUSD to low-market cap TrueUSD (TUSD) stablecoin. The exchange removed Tether (USDT) from zero-fee trading program, causing Binance’s market share to drop more than 50% and trading volumes to drop significantly.

Recently, CoinGape Media reported that Binance’s market share has dropped to a one-year low, dropping to 53.7% amid regulatory heat and low trading volumes.

Read More: Reports Of US DOJ Fraud Charges On Binance Resurface

Is this Bullish for Crypto Market?

First Digital USD (FDUSD) is backed by Hong Kong-based custodian and trust company First Digital. FDUSD’s market cap of $257 million is still low compared to other stablecoins like USDT, TUSD, BUSD, and USTC. Thus, it will not have much impact on the crypto market now, but minting new FDUSD amid demand from Binance can cause a significant boost in market cap.

Binance remains the top exchange for Bitcoin trading. BTC/TUSD and BTC/USDT on Binance are the most traded pairs, accounting for 14.80% and 6.88% trading volume.

Also Read:

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

The world’s largest crypto exchange Binance on Thursday said it will relaunch its most popular zero-fee trading for a limited period from today onwards. Users will be able to enjoy zero trading fees when purchasing cryptocurrencies from May 18-June 18, 2023. However, the limited period zero trading fee is only applicable on Auto-Invest.

The move comes as Bloomberg reported that Binance continues to lose its dominance in the crypto market due to heightened scrutiny and regulatory action by US regulators. Also, Binance is witnessing low liquidity as compared to earlier quarters as Jump Crypto and Jane Street are pulling back their market-making activity from the US.

Also Read: Do Kwon and Terraform Labs Withdraw Millions A Year After Terra-LUNA Crisis

Binance Announces Zero Trading Fees After Losing Market Share

Crypto exchange Binance introduces zero-fee crypto trading for Auto Invest investors, according to an official announcement on May 18. The zero trading fees will be available only for a month, May 18-June 18.

Users will be able to buy over 210 cryptocurrencies including Binance, Ethereum, Shiba Inu, PEPE, and others on Auto Invest. It has more than 15 fiat currencies and stablecoins via the Single-Token, Portfolio, and Index-Linked plans.

Auto-Invest is a dollar-cost averaging (DCA) investment strategy allowing users to automate their crypto investment and earn passive income at the same time.

Also Read: Binance Making These Efforts To Increase Bitcoin and Ethereum Liquidity

On March 15, Binance ended its zero-fee Bitcoin trading and BUSD zero-maker fee programs, shifting the zero-fee Bitcoin trading facility to TUSD only due to a crackdown against Binance USD (BUSD). Since then, trading volume on the exchange has decreased significantly as most volumes came from BTC/USDT pair. The CFTC lawsuit against Binance and CEO “CZ” added more challenges.

According to Kaiko, Binance’s spot-trading volumes share fell to 51% in May, earlier in March it was 73%. The market share of Huobi increased from 2% to 10% and OKX from 5% to 9%. Also, South Korean exchanges’ market shares increased to 14% from 8%.

The US SEC is also close to bringing an enforcement action against Binance. In response, Binance CEO is planning to reduce his shareholding in the Binance.US crypto exchange to reduce the impact on its US arm.

Also Read: FTX Sues Sam-Bankman Fried, Michael Giles, And Silicon Valley VCs

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Binance, the world’s largest crypto exchange, dominates the crypto market due to the massive trading volumes it records on the exchange. However, Bitcoin spot and derivatives trading volumes on Binance are declining in the last few months.

Over the past few years, Binance recorded higher derivatives trading volume in the U.S. hours in comparison to other hours. However, the volumes are dropping during the U.S. hours since the CFTC lawsuit in March, reported Kaiko on April 13.

Bitcoin derivatives trading volume data for BTC-USD, BTC-USDT, and BTC-BUSD perpetual futures contracts indicated trading volume usually rises between 13:00 and 20:00 UTC. The Q1 2023 data was compared with Q4 2021 and Q4 2022 figures, with Binance’s Bitcoin trading volumes almost doubled in U.S. hours.

“However, not charted, we noticed a drop in volumes during U.S. hours since the CFTC lawsuit,” noted Kaiko.

Will Binance’s Trading Volume Drop Impact Bitcoin Price?

Bitcoin trading volume for the BTC-USDT pair fell 90% on crypto exchange Binance after it ended the zero-fee Bitcoin trading for all trading pairs except TrueUSD (TUSD). While the daily trading volume on BTC-TUSD pair has increased to $170 million, it’s still relatively lower.

Binance made major changes to its zero-fee Bitcoin trading program and BUSD zero-maker fee promotion as part of removing Binance USD (BUSD) after the crackdown by U.S. regulators.

Binance‘s market share dropped to 54% from 70% two weeks ago, the lowest level since November 5, after the CFTC lawsuit and ending some zero-fee trading. Kaiko earlier clarified that CFTC had no impact on Binance’s trading volumes, but today it agreed that it does have some impact.

While Bitcoin has jumped over $30,000, the upcoming price rally is likely to be restrictive. The BTC price is currently trading at $30,255, up 1% in the last 24 hours. Meanwhile, the ETH price has hit $2,000 after the Shanghai upgrade due to massive shorts liquidation.

Also Read: London Stock Exchange To Offer Bitcoin Futures And Options Trading

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

• IOTA recently launched its smart contract beta that makes Ethereum’s ERC-20 tokens interoperable with its network.
• IOTA’s smart contracts offer an alternative to Ethereum and Cardano focused on making blockchain applications mainstream.
• DeFi, Web3, NFT applications on IOTA are focused on the internet of things and machine-to-machine communications.
• While Ethereum is yet to introduce sharding, IOTA has the capacity to process transactions in parallel with blocks, chains or miners.

IOTA Foundation has launched feeless, programmable and scalable smart contracts. Developers can develop smart contracts on the IOTA blockchain and deploy them on the Ethereum blockchain. 

IOTA launched its smart contract beta, includes support for Ethereum virtual machine

IOTA announced the launch of its smart-contract beta, compatible with the Ethereum blockchain. IOTA users can now take advantage of the network’s high-speed zero-fee smart contracts. 

The open-source cryptocurrency ledger is now testing its new features that offer an alternative to Ethereum and Cardano. The network supports interoperability with ERC-20 tokens. 

Dominic Schiener, CEO of IOTA Foundation, has explained IOTA’s smart-contract launch, 

Our objective is to become a leader alongside Ethereum and make sure that our future will be decentralized. We want to help advance our young industry towards mainstream adoption and establish trust as a free public good for all societies to benefit from.

Schiener shared that it is exciting for him to realize the crypto vision of a multi-chain future with IOTA. 

IOTA tackles sharding and scalability (Two problems that the Ethereum network faces currently). 

The Ethereum network has announced the Altair upgrade to prepare the blockchain for sharding. IOTA inherently possesses the capacity to process parallel transactions with blocks, chains or miners. 

The arrival of smart contracts on IOTA has intensified the network’s competition with key players Ethereum and Cardano.

IOTA makes it possible for smart-contract chain developers to define their tokenomics and zero transaction fees. Protocols can reward validators with their native tokens and reduce entry barriers that plague the decentralized application ecosystem. 

With these developments, IOTA plans to drastically scale up support for decentralized application builders and focus on making blockchain applications mainstream. 

Pseudonymous cryptocurrency analyst, @eliz883, has a bullish outlook on IOTA. The analyst has set a target of $2.08 for the IOTA price.