What happened?
Binance US, a cryptocurrency exchange, significantly reduced its fees in an effort to regain its market share – now standing at just 0.20%. The platform now offers 0% maker fees and only 0.01% taker fees on over 20 crypto pairs without any subscription or volume prerequisites. Despite these aggressive cuts, the trading volumes remain marginal.
Who does this affect?
The drastic fee reduction impacts both current users and potential new users of Binance US who are seeking affordable cryptocurrency trading options. It also influences the competition among other cryptocurrency exchanges like Coinbase and Kraken. Furthermore, it affects institutional investors who remain minimally involved with Binance US due to compliance uncertainties and liquidity concerns.
Why does this matter?
This matters for the cryptocurrency market because Binance US is trying to regain its competitive edge after the serious blow it took following the SEC lawsuit. Although the lawsuit is behind them, they still struggle with recovering their trading volume. The impact of this move on future trading volumes and market share will be an important indicator of the sustainability of exchanges that have faced regulatory issues.