Binance Trading Volume Now Larger than the Next 13 Biggest Exchanges Combined
Crypto exchange Binance has seen a massive surge in trading volume since the start of the bear market, particularly after the platform removed trading fees for BTC and ETH pairs. Now, for the first time, Binance commands a market share that transcends the aggregated volumes of the next 13 crypto exchanges.
Binance Waves Trade Fees to Celebrate 5th Anniversary
To celebrate its fifth anniversary, Binance introduced zero-fee trading for 13 available BTC spot trading pairs in early July. In a subsequent announcement, the exchange further detailed its zero-fee trading feature, clarifying that there are no hidden costs. The platform said:
“At Binance, we’ve always wanted to make crypto as accessible and inclusive as possible. That is why we’ve maintained some of the lowest fees within the industry. With this move, we are doubling down on that commitment, vision, and goal.”
Binance also denied claims that the exchange is considering restructuring in order to rebalance profits, noting that they are not “increasing spreads, or engaging in other activities to profit from this change.” The exchange said that Bitcoin and its spot trading pairs account for a small portion of their overall revenue, which remains sustainable.
In late August, Binance extended its zero-trading feature to cover the ETH/BUSD spot trading pair, too. At the time, the platform cited the excitement around the Merge as the reason for this promotion. “Although we’ll miss out on some fees, Binance’s reserves are still as robust and healthy as ever,” the exchange said, reiterating that there will be no hidden fees.
Binance Sees Massive Spike in Trading Volume
Binance has historically commanded the lion’s share of crypto trading. However, with the introduction of its zero-trading fee model for the most popular trading pairs, the platform has further increased market share—so much so that it now exceeds the aggregated volumes for 13 other exchanges, including Coinbase, FTX, Huobi, Okex, and more.
Furthermore, Binance is the only crypto exchange that has seen its trading volume increase since the start of 2022. In contrast, volumes have trended down on all other exchanges, according to a blog post by Kaiko.
Coinbase Updates Fee Model
Coinbase, the largest cryptocurrency exchange in the US, has also announced a change in its fee mechanism. Starting today, the platform will implement a new fee structure to accommodate the current crypto market climate, the exchange said, lowering the fees for some clients while increasing costs for others.
More specifically, Coinbase customers with $15 million to $250 million in monthly volume may end up paying fees that are as much as 2 basis points higher than what they are paying right now. On the other hand, large clients with a volume of more than $250 million a month may see slightly lower fees. The exchange said:
“Coinbase Exchange will implement a new fee structure to account for changes in global crypto trading volumes and asset prices, lowering the monthly trading volume required to qualify for the mid and upper tiers of our fee schedule. The new fee schedule will be implemented on Coinbase Exchange, Pro, and Advanced Trade.”
Coinbase’s fee update can be interpreted as a move to attract more institutional clients, as opposed to Binance, which is typically the go-to place for retail users outside of the US.
This article originally appeared on The Tokenist
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