Binance, the world’s largest crypto exchange, recently added the trading pairs BTC/FDUSD and ETH/FDUSD to its zero-fee trading program. Binance recently listed FDUSD, a 1:1 USD stablecoin on the BNB smart chain issued by Hong Kong-based licensed trust company, First Digital. The new no-cost trading program allows users to buy and sell supported cryptocurrencies using FDUSD without paying transaction fees.
Binance Introduces Zero-Fee Trading Program
The zero-fee trading program is part of Binance’s effort to increase trading volumes between stablecoin pairs. The company is currently running a zero-fee bitcoin trading & BUSD zero maker fee promotion for supported stablecoins. With its latest move, Binance adds FDUSD to the fray of supported stablecoins on both spot and margin trading pairs.
#Binance adds #BTC / $FDUSD And $ETH / $FDUSD trading pairs and updates the zero-fee Bitcoin trading program.
More information ⤵️https://t.co/g6Elnd77d9
— Binance (@binance) August 3, 2023
Taker fees are paid when the trade order is executed, while maker fees are paid when users place limit orders. According to the announcement on her bloggingstarting August 8, users can enjoy zero maker and taker fees on the BTC/FDUSD spot and margin trading pairs.
Users will also enjoy zero maker fees on all FDUSD spot and margin trading pairs, but takers will continue to pay standard fees based on the existing trading structure.
The potential impact on prices
Binance’s announcement to waive trading fees could have a significant impact on Bitcoin and Ethereum prices. As the world’s largest crypto exchange, Binance has a lot of influence on the crypto market. In the past, Binance’s rate cuts and zero-fee promotions preceded price pumps and trade volume increases for included cryptocurrencies, even if only temporary.
Bitcoin appears to have found a little under $30,000 on its own, but the influx of new money and traders could support higher price pressures for Bitcoin. The same goes for Ethereum, which is currently around $1,800.
BTC price could benefit from zero fees on Binance | Source: BTCUSD on Tradingview.com
With no trading fees, investors can also freely move money in and out of stablecoins to take advantage of arbitrage opportunities on exchanges or trading pairs.
In March, Binance decided to implement zero maker and taker fees on the BTC-TUSD. As a result, the TUSD stablecoin increased 10x in trading volume and surpassed $1 billion in less than 24 hours. During this period, the BTC-TUSD pair on Binance alone exceeded $700 million in trading volume.
It is unclear when the zero-fee trading promotion will end on the BTC/FDUSD and ETH/FDUSD trading pairs, but the volume of FDUSD traded on the exchange is expected to increase.
Featured image from iStock, chart from Tradingview.com