Bitcoin Trading Volume on Binance Crosses $9 Billion

Binance's Biggest Trading Volume in 2022

The trading volume of Bitcoin ($BTC) spiked above 9 billion USD on Friday, July 8, the largest level seen this year, counter to general crypto market stagnation.

The cause of the above phenomenon was quickly linked to Binance’s recent removal of transaction fees for 13 trading pairs between Bitcoin, fiat and stablecoins. This was a change adopted by Binance to celebrate its 5th birthday in July.

However, instead of stimulating actual trading demand, the removal of transaction fees was taken advantage of by many Binance users to improve their personal achievements, namely, to raise their VIP level on the exchange through block accumulation of the volume of transactions by the act of self-trading (wash trading). 

Generally speaking, the spike in trading volume was caused by that user behavior, not actual buying demand in the context of the bearish cryptocurrency market. As a result, prices did not fluctuate much but trading volume leapt up. Binance CEO Changpeng Zhao (“CZ”) was quick to identify and acknowledge the problem.

“I think the free transaction offer is to raise the VIP level. So we will remove BTC from the VIP calculation formula and the incentive to conduct wash trading.” Zhao said on Twitter.

Binance removed 13 free-to-trade Bitcoin trading pairs from the formulas for calculating user VIP levels and liquidity providers' market maker program.

What is Binance:

Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the most prominent digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.