According to market intelligence firm Kaiko, the liquidity of BTC-USDT and BTC-BUSD trading pairs on Binance, the leading cryptocurrency marketplace, has experienced a significant decline of nearly 70% and 60%, respectively.
The BTC-TUSD trading pair has experienced a remarkable surge in liquidity, with a staggering 250% increase from a mere 9 Bitcoin to 29 BTC in just 24 hours. A data analytics expert has attributed the significant drop in liquidity to Binance’s recent move to eliminate its flagship no-fee trading feature for all BTC pairs except BTC/TUSD.
It is noteworthy to mention that Binance’s introduction of zero fees for Bitcoin pairs in July 2022 has proven to be a game-changer, resulting in a remarkable 20% increase in market share over the last eight months.
According to Clara Medalie, the esteemed research director at Kaiko, Binance recently made a subtle move by discontinuing the BUSD auto-conversion feature and reintroducing the TUSD stablecoin, which was previously delisted in September. Medalie further elaborated on this development in a composed and professional manner.
Zero-fee trading is unsustainable in the long run, but in the short run, enabled Binance to gain massive market share. Without zero fees for most BTC pairs, we could expect a short-term drop in market share.
Last week, the zero-fee BTC pairs on Binance made a remarkable achievement by reaching an all-time high market share of 61%. However, despite this impressive feat, Binance remains the top player in the crypto spot market, as confirmed by data from the reputable market tracking portal, CoinMarketCap.
Over the past 24 hours, the crypto trading community has been buzzing with activity, as Binance alone facilitated the buying and selling over $18.5 billion worth of cryptocurrencies. Impressively, Binance outperformed its closest competitor by a staggering margin of over $13 billion, solidifying its position as a leading exchange in the industry.
