Binance, one of the world's largest cryptocurrency exchanges, has reported its lowest bitcoin trading volume in eight months following the termination of zero-fee trading. The exchange had previously offered users zero fees for trades as part of a promotion that began in November last year.
According to data from CryptoCompare, zero-fee trade volume accounted for 66% of Binance’s trading volume in mid-March prior to the decision to eliminate the promotion. Since then, there has been a significant drop-off with total bitcoin trading volumes on Binance hitting an eight-month low.
The move by Binance to end their zero-fee promotion was seen as a way to encourage more sustainable growth and reduce speculation on cryptocurrencies. However, it seems that this decision has had an impact on user behavior and overall trading activity.
In response to these figures, Binance CEO Changpeng Zhao stated that "we are not worried about our current market share or ranking," adding that "we are focused on building our platform and ensuring we offer top-quality services."
Despite this reassurance from Zhao, some analysts have suggested that declining volumes could raise concerns over the long-term sustainability of cryptocurrency markets. Others have pointed out that competition is increasing with new players entering the market.
It remains unclear what steps Binance will take next but investors will be watching closely for any announcements regarding changes to their fee structure or new promotions aimed at boosting user activity.
As always with cryptocurrency markets though, anything can happen so it remains important for traders and investors alike to keep up-to-date with developments within this rapidly evolving industry.