- Binance’s zero-fee trading promotions led to a surge in trade volumes.
- The volume of zero-fee trading on Binance experienced a noticeable decline.
- Binance reached an unprecedented market share of approximately 70%.
In the last year, Binance, a prominent cryptocurrency exchange, substantially expanded its zero-fee trading promotions, encompassing 13 BTC pairs. This strategic move promptly generated a surge in trade volumes, as Kaiko’s latest report indicated, with the introduction of BTC zero-fee trading in July 2022, propelling trading activity to unprecedented levels.
According to data provided by the esteemed smart data research platform Kaiko, Binance’s strategic promotions, while instrumental in establishing their market dominance, may have presented certain revenue hurdles. The volume of zero-fee trading experienced a noticeable decline, suggesting potential implications on the revenue front during this period.
However, it is worth noting that Binance experienced a significant surge in its market share, reaching an unprecedented level of approximately 70% compared to its main rivals. Throughout 2022, the exchange consistently achieved monthly trading volumes surpassing $300 billion, crucial in its market share expansion, as highlighted in the Kaiko report.
According to Kaiko’s data, during the height of its zero-fee promotions in September 2022, a remarkable 85% of the overall weekly trade volume consisted of zero-fee trades. This pattern continued until the conclusion of the promotion in March 2023.
Subsequently, Binance implemented a more discerning strategy towards zero-fee trading, particularly emphasizing TUSD. This stablecoin served as an alternative to BUSD following Paxos’ issuance challenges. BTC-TUSD emerged as the most traded pair across all cryptocurrency exchanges, boasting a staggering weekly trading volume exceeding $10 billion.
Despite Binance’s successful endeavor to enhance its market share through these promotional efforts, the prevailing decline in cryptocurrency trading engagement throughout the previous year might have curtailed the desired effect on fee-generating trading activity, per insights from Kaiko, a prominent player in the crypto industry.
In the latest development from Binance, the renowned cryptocurrency exchange is gearing up to strengthen its foothold in Japan by introducing a comprehensive range of 34 tokens, notably its native token, BNB. This significant update was initially disclosed through Coinpost, a prominent local media platform specializing in cryptocurrency news.
