Trading volume spiked higher at Binance after its zero trading fee policy went live on Friday morning.
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Zero trading fees worldwide for 13 crypto pairs at Binance – the world’s largest crypto exchange by volume – began Friday at 14:00 UTC (10 a.m. EST). The move caused an explosion in trading at the exchange, with Bitcoin/USDT spot volume surging to 320,000 coins within hours. The exchange hasn’t seen volume that high for even a full day since March 2020.
Chart from Binance website shows skyrocketing bitcoin trading volume on the crypto exchange immediately after 0% commission trading went live earlier Friday. (Binance)
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Binance CEO Changpeng Zhao attributed the surge to people trying to gain VIP tiers via high trading volumes. “We will exclude BTC trading from VIP calculations,” he tweeted. “Remove all incentives to wash trade. Announcement with details coming shortly.”
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The exchange made the zero-fee announcement on Wednesday, with the plan becoming effective today – Binance’s fifth anniversary.
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“With the onset of the crypto bear market, exchanges like Binance have been seeking ways of attracting and retaining users on their platforms to ensure their slice of the depleted pie remains healthy,” CoinDesk reported at the time.
