Binance’s Bitcoin liquidity for TUSD surges 250% News ▸ Binance ▸ Bitcoin ▸ Stablecoins
Binance’s Bitcoin liquidity for TUSD surges 250%
Kaiko's director of research Clara Medalie said the zero-trading fee option helped improve Binance's market share by 20% within eight months.
2 min read
Updated: Mar. 23, 2023 at 10:20 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance’s Bitcoin (BTC) liquidity for its TrueUSD (TUSD) rose more than 250% on March 22 after it phased out its zero-fee trading for other stablecoins.
Kaiko Data researcher Riyad Carey highlighted that the exchange’s BTC liquidity for Binance USD (BUSD) and Tether’s USDT declined by 60% and 70%, respectively.
Meanwhile, the exchange’s liquidity for TUSD increased to 29 BTC from 9 BTC within a few hours.
On March 15, Binance announced it was moving the zero-fee BTC trading feature from BUSD to TUSD on March 22. At the time, CEO Changpeng ‘CZ’ Zhao blamed the regulatory upheaval the other stablecoins faced for the firm’s decision.
Will this decision affect Binance’s market share?
Kaiko’s director of research, Clara Medalie, highlighted the role the zero-trading fee option played in improving Binance’s market share.
According to Medalie, the free trading option helped Binance gain an additional 20% of the market since it was introduced in July 2022. At the time, Binance controlled only 50.5% of the market; however, the exchange’s market control increased to 72% following FTX’s collapse in November 2022.
Additional information from Kaiko pointed out that the zero-trading option accounted for 61% of the total volume on Binance as of the previous week.
Binance users drawn to the exchange because of its zero-fee feature could leave for other rival platforms, Medalie noted.
TUSD keeps growing
Binance’s decision would greatly benefit TUSD — emerging as a significant winner from its rivals’ recent debacle.
Carey added that Binance’s decision showed that it had made an apparent move to promote TUSD as the successor to BUSD.
Since the crackdown on BUSD, TUSD has seen its circulating supply double to over $2 billion and become the second-largest stablecoin on the Tron network. During the period, Binance minted more TUSD stablecoin and added new trading pairs for the asset.
Meanwhile, Protos’ researcher Bennett Tomlin pointed out that TUSD is one of the weirdest stablecoins in the crypto market. According to the researcher, TUSD has some undisclosed relations with Justin Sun, and bankrupt Alameda Research was also a lead investor in the asset.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Binance USD
$1.00114
BUSD is a stablecoin issued by Paxos in partnership with Binance..
USD Coin
$1.00008
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Tether
$0.99952
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.