Binance, one of the world's leading cryptocurrency exchanges, has seen its Bitcoin trading volume hit its lowest level in 8
Key Highlights :
Since the end of its no-fee trading promotion on March 22, Binance’s Bitcoin (BTC) trading volume has dropped significantly, and its global market share has decreased from 70% to 58%. This is according to Kaiko research analyst Riyad Carey, who noted that the zero-fee trading promotion increased Binance’s market share from 50% to 72%.
Binance has since phased out zero-fee trading, with the exception of the trueUSD (TUSD) stablecoin. After fees were reinstated, Binance’s market share has halved to below 30%. This is likely due to traders switching to other exchanges that still offer zero-fee trading.
The BTC-TUSD pair accounts for only 2.8% of the exchange’s total volume, which is a far cry from the 72% market share it enjoyed during the zero-fee trading promotion. This shows that Binance’s fee structure is having a significant impact on its trading volume.
The recent drop in Binance’s market share and trading volume has been compounded by increased regulatory scrutiny. The U.S. Commodity Futures Trading Commission (CFTC) has sued the exchange and its founder Changpeng Zhao, which has caused many traders to be wary of trading on the exchange.
This situation highlights the importance of regulatory compliance in the cryptocurrency industry. Exchanges must ensure that they are compliant with local laws and regulations in order to attract and retain traders. Binance’s recent experience shows that regulatory issues can have a major impact on an exchange’s trading volume.
In conclusion, Binance’s recent experience shows the importance of regulatory compliance in the cryptocurrency industry. The exchange’s market share and trading volume have dropped significantly since the end of its no-fee trading promotion and the subsequent regulatory scrutiny it has faced. The BTC-TUSD pair accounts for only 2.8% of the exchange’s total volume, which shows that Binance’s fee structure is having a significant impact on its trading volume.
Continue Reading at Source : coindesk
