The world’s largest cryptocurrency exchange, Binance, has announced the launch of a zero transaction fee promotion for Bitcoin (BTC) and Ethereum (ETH) pairs against the newly listed First Digital USD (FDUSD) in spot and margin trading. This promotion comes after the exchange suspended the zero transaction fee promotion for all pairs except TrueUSD (TUSD) in March. As expected, this is expected to have an impact on cryptocurrency prices, including BTC and ETH.
Zero Transaction Fee Promotion Begins for BTC/FDUSD and ETH/FDUSD Pairs
The zero transaction fee promotion for the BTC/FDUSD pair is an important part of Binance’s strategy to increase market share. Users will be able to benefit from the zero transaction fee market maker and market taker promotions in the BTC/FDUSD pair in spot and margin trading starting from August 4th at 11:00. Users will also be able to benefit from the zero transaction fee market maker promotion in the ETH/FDUSD pair, as well as the standard market taker promotion depending on their VIP levels.
Binance has announced that the trading volume of the BTC/FDUSD pair in spot and margin trading will not contribute to the VIP tier volume calculations and all Liquidity Provider programs. This is done to provide users with a superior trading experience, while BNB discounts, referral rebates, and other configurations will not be applicable to the BTC/FDUSD pair during the promotion period.
The relaunch of the zero transaction fee trading promotion follows Binance’s suspension of the zero transaction fee Bitcoin trading program and the zero transaction fee market maker promotion in BUSD pairs in March. Following this, the exchange switched from BUSD to TUSD stablecoin, which has a much lower market value. This decision resulted in a decrease of over 50% in Binance’s market share and a significant drop in trading volume.
Current data shows that Binance continues to be under pressure due to regulatory reviews and low trading volume in different regions. Although the exchange’s market share has dropped to its lowest level in the past year at 53.7%, it remains the leading exchange in Bitcoin trading. Currently, the BTC/TUSD and BTC/USDT pairs on Binance account for 14.80% and 6.88% of the exchange’s trading volume, respectively.
FDUSD Market Value May Increase Following Binance’s Move
FDUSD, which is included in the zero transaction fee promotion against Bitcoin and Ethereum, is issued by First Digital, a Hong Kong-based custody and trust company.
The $257 million market value of FDUSD is significantly lower compared to other stablecoins such as USDT, TUSD, BUSD, and USTC. Therefore, although the zero transaction fee promotion launched by Binance is not expected to have a significant impact on the cryptocurrency market for now, the demand from the exchange may result in the issuance of new FDUSD tokens and lead to a significant increase in the market value of the stablecoin.
