On Sept. 7, cryptocurrency exchange Binance began heeding bitcoin transaction processing fees again for bitcoin transactions paired with the TrueUSD (TUSD) stablecoin.
The removal of the incentive has led to a weakening of trader activity, according to a report by CCData.
Trading volume fell 26% in monthly terms. After the return of commissions, the amount of trades in the leading digital currency collapsed by 89%.
Binance exchange tops the ranking of trading platforms in both spot and derivatives markets.
However, Binance’s dominance in the spot market has declined from 56.9% to 33.9% in 2023. The share of the exchange’s US affiliate, Binance US, has also declined strongly over the past few months.
In addition to the return of commissions, the attractiveness of the exchange has been negatively affected by the SEC crackdown, emphasized CCData analyst Jacob Joseph.
In early June, the SEC initiated a lawsuit against Binance and the exchange’s CEO Changpeng Zhao.
CCData also revealed that in August, investors withdrew 12,230 bitcoins worth about $330 million from exchange addresses on Binance.
In addition, they took 198,200 ether worth $323 million from the trading platform due to fears that the exchange would suspend withdrawals amid harassment by U.S. authorities.