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News

Binance’s Trading Volume Faces Challenge Due To Zero-Fee Promotion Halt

September 22, 2023 - Around 2 mins mins to read

Key Points:

  • Binance, the world’s largest cryptocurrency exchange, is facing a sharp decline in trading volume, likely due to the end of a zero-fee promotion.
  • Regulatory challenges, including lawsuits from US authorities, have contributed to Binance’s trading struggles and declining market share.
In recent weeks, Binance, the world’s largest cryptocurrency exchange, has witnessed a significant drop in its trading volume, which experts suggest may be linked to the conclusion of another zero-fee promotional campaign, as reported by Bloomberg.
Binance's Trading Volume Faces Challenge Due To Zero-Fee Promotion Halt
Binance's Trading Volume Faces Challenge Due To Zero-Fee Promotion Halt 2

Binance’s Trading Volume Grapples with Decline as Zero-Fee Promotions Fade

This isn’t the first time that the conclusion of such promotions has impacted Binance‘s trading figures. Back in March, after ending a zero-fee campaign for trading Bitcoin cryptocurrency pairs, Binance’s share of all spot trading decreased from 65% to 58.8% in just one week.

The decline in trading volume is evident, with a 26% decrease in the seven-day average volume since the start of September, according to CCData. This drop coincided with Binance discontinuing an incentive that allowed fee-free trading between Bitcoin and the TrueUSD stablecoin, leading to an 89% drop in the seven-day average volume for that trading pair.

Regulatory Challenges and Outflows Impact Binance’s Market Dominance

While the end of zero-fee trading promotions is a contributing factor to the dwindling volumes, regulatory concerns surrounding the exchange have also played a role.

Binance’s dominance in the trading arena has also been challenged this year due to legal action taken against the platform. Both the US Commodity Futures Trading Commission and the Securities and Exchange Commission filed lawsuits alleging that Binance failed to register with US regulators. Binance, its founder Changpeng Zhao, and its American operations, specifically Binance.US, are currently contesting these charges in court.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Binance

Binance.US

CZ

Trading volume

zero-fee promotion

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Binance’s Trading Volume Faces Challenge Due To Zero-Fee Promotion Halt

Key Points:

  • Binance, the world’s largest cryptocurrency exchange, is facing a sharp decline in trading volume, likely due to the end of a zero-fee promotion.
  • Regulatory challenges, including lawsuits from US authorities, have contributed to Binance’s trading struggles and declining market share.
In recent weeks, Binance, the world’s largest cryptocurrency exchange, has witnessed a significant drop in its trading volume, which experts suggest may be linked to the conclusion of another zero-fee promotional campaign, as reported by Bloomberg.
Binance's Trading Volume Faces Challenge Due To Zero-Fee Promotion Halt
Binance's Trading Volume Faces Challenge Due To Zero-Fee Promotion Halt 4

Binance’s Trading Volume Grapples with Decline as Zero-Fee Promotions Fade

This isn’t the first time that the conclusion of such promotions has impacted Binance‘s trading figures. Back in March, after ending a zero-fee campaign for trading Bitcoin cryptocurrency pairs, Binance’s share of all spot trading decreased from 65% to 58.8% in just one week.

The decline in trading volume is evident, with a 26% decrease in the seven-day average volume since the start of September, according to CCData. This drop coincided with Binance discontinuing an incentive that allowed fee-free trading between Bitcoin and the TrueUSD stablecoin, leading to an 89% drop in the seven-day average volume for that trading pair.

Regulatory Challenges and Outflows Impact Binance’s Market Dominance

While the end of zero-fee trading promotions is a contributing factor to the dwindling volumes, regulatory concerns surrounding the exchange have also played a role.

Binance’s dominance in the trading arena has also been challenged this year due to legal action taken against the platform. Both the US Commodity Futures Trading Commission and the Securities and Exchange Commission filed lawsuits alleging that Binance failed to register with US regulators. Binance, its founder Changpeng Zhao, and its American operations, specifically Binance.US, are currently contesting these charges in court.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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