coinspress.com
The trading volume for Bitcoin saw a significant decline in the past month, primarily due to the discontinuation of Binance's zero-fee program.
The volume dropped by over 10 million Bitcoin or $265 billion, representing a 65% decrease from March on the exchanges tracked on The Block’s Data Dashboard.
The reintroduction of fees on Bitcoin pairs by Binance was the reason for this decline, affecting market makers and traders whose strategies rely on trade costs. Binance ended its zero-fee spot trading campaign in March, initiated in July to commemorate its fifth anniversary.
However, Binance users can still trade Bitcoin with TUSD stablecoin for free. The end of the zero-fee campaign also impacted Binance’s total spot trading volume, which decreased to $102 billion in April from $319 billion in March, reducing its spot market share to less than 50%.
The decline of Binance’s trading volume also affected the overall crypto spot trading volume, decreasing around 44% compared to March, amounting to $400.5 billion in April on The Block’s Data Dashboard.
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Despite facing legal action from the U.S. Commodity Futures Trading Commission over allegations of operating an “illegal” exchange and a “sham” compliance program, Binance continues to maintain its position as a major player in spot trading.
Binance’s CEO, Changpeng Zhao, has denied the accusations and expressed disappointment over the lawsuit. Despite the controversy, Binance’s dominance in the share of Bitcoin futures open interest remains steady.