Binance’s TUSD Bitcoin Liquidity Rises 250%
Binance’s Bitcoin (BTC) liquidity for TrueUSD (TUSD) increased by 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 Tethers USDT fell by 60% and 70% respectively.
Meanwhile, the exchange’s liquidity for TUSD increased to 29 BTC from 9 BTC in a matter of hours.
On March 15th, Binance announced that they were moving the zero-fee BTC trading feature from BUSD to TUSD on March 22nd. At the time, CEO Changpeng ‘CZ’ Zhao blamed the regulatory upheaval faced by other stablecoins for the firm’s decision.
Will this decision affect Binance’s market share?
Kaiko’s director of research, Clara Medalie, highlighted the role that the zero trading fee option played in improving Binance’s market share.
According to Medalie, the free trade option helped Binance gain an additional 20% of the market since its introduction in July 2022. At that time, Binance only controlled 50.5% of the market; However, the exchange’s market control increased to 72% after FTX’s collapse in November 2022.
Additional information from Kaiko pointed out that the zero trade option accounted for 61% of the total volume on Binance as of last week.
Binance users drawn to the exchange because of its zero-fee feature may abandon other rival platforms, Medalie noted.
TUSD continues to grow
Binance’s decision would greatly benefit TUSD – which is emerging as a significant winner from its rivals’ recent debacle.
Carey added to it 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 rarest stable coins in the crypto market. According to the researcher, TUSD has some unknown relationship with Justin Sun, and bankrupt Alameda Research was also a major investor in the asset.
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