Will Binance’s Zero-Fee Trading Help Bitcoin And Ethereum Prices
August 04 2023 - 9:00AM
NEWSBTC
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. Related Reading: MicroStrategy’s
Michael Saylor Says Spot ETF Approvals Have No Bearing On Bitcoin
Strategy #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. Related
Reading: Here’s Where The Price Of LUNC Will Land This August,
According To This Algorithm 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
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