Binance – the world’s largest and most popular cryptocurrency exchange according to trading volumes – has announced it’s eliminating some of its trading fees.
Binance Bids Adieu to Some Trading Fees
The fees are being removed for approximately 13 separate trading pairs. The founder of the exchange Changpeng Zhao stated in a recent interview:
In line with our user-first philosophy, Binance has always strived to provide the most competitive fees in the industry. At its core, Binance is an inclusive platform with accessibility in mind. Eliminating the trading fees on selected BTC spot trading pairs is another move towards that direction.
The fees were rolled back beginning July 8 of this year. At the time of writing, stable assets like Tether and USD Coin (USDC), along with the stable coin for Binance (BUSD) are available to traders without associated fees. In addition, customers can trade the euro and the Turkish Lira without incurring additional payment figures. Right now, those looking to trade between bitcoin and the U.S. dollar are still being subjected to fees.
The firm is attributing the lack of fees to its five-year anniversary. This is a gift the company is giving its customers, and Binance has been a dominant force in the digital currency arena since 2017. The following announcement was also made by Chris Brendler, the senior research analyst at D.A. Davidson:
Outside of its anniversary, the obvious answer for why Binance is offering lower bitcoin trading fees is because [crypto trading] volumes have been going down. It’s more of a marketing initiative to generate trading activity alongside their anniversary.
While the company may not be saying so at press time, one can assume this is true, and that the firm is rolling back fees as a way of dealing with crashing prices. Bitcoin, for example, was initially trading at a new all-time high of roughly $68,000 per unit about nine months ago.
The Space Continues to Crash
However, since then, the asset has lost about 70 percent of its value and is having trouble maintaining the $20,000 mark. Many other primary digital currencies, such as Ethereum, have also fallen greatly from their November 2021 highs, and it appears Binance is likely rolling back fees to ensure trading volume remains high and the company can stay in business. Over the last nine months alone, the crypto space – which was once valued at roughly $3 trillion – has lost more than $2 trillion.
In any case, Binance still appears to be a solid force in the lagging crypto industry. Last month, Binance held roughly 73 percent of the crypto-only spot market share. Zhao has also stated that he sees “a lot of opportunities in the market” despite dying prices. He has hinted his company is looking to hire new employees at a time when others – such as Coinbase – are relieving staff members.