Binance wants to strengthen the leading position on the cryptoma market with free trade

The KRYPTO exchange Binance increases its efforts to gain market shares by expanding their free trade to the popular token-ther, in front of one of the most expected events in the short history of the crypto market.

Binance, according to volume, the world's largest trading center for digital assets, foregoes for a month for fees for customers who ether - the second largest digital token - act with the domestic currency of Binance, known as BUSD.

The initiative precedes an excited upgrade of the Ethereum blockchain, in which ether transactions are recorded. In the industry known as a merge, it promises a departure from an outdated, energy-intensive digital main book system, which is known as the "proof of work", towards a "proof of stake" model that is significantly reduced its CO2 footprint.

The step of offering free ether trading before the big event underlines how Binance uses the consequences of this year's crypto crash to take a new attempt to draw customers on its platform. About 90 percent of Binance's total revenue comes from trade fees that fluctuate with the price of Bitcoin and other cryptocurrencies, said the CEO of the privately owned group, Changpeng Zhao at the beginning of this year.

In the course of the summer, Binance began to offer free bar trade with several Bitcoin pairs, including euros and pounds. In the following eight weeks, the market capitalization rose from 8 percent to $ 19 billion from $ 8 percent, according to the data compiled by Cryptocompare.

So -called stablecoins such as Busd are often used as a value -plot between bets on digital coins, since they are supposed to pursue the price of the dollar and other traditional currencies. Busd is one of the largest stable coins in the world and competes with Tether and the USDC from Circle.

SIPHO Arntzen, Research Analyst of the next generation at Julius Bär, said that Binance's step "could actually represent a kind of" Market Grab "strategy".

The latest initiative from Binance will continue until September 26th. It described the merger as "an important milestone for the Ethereum and the large web3 ecosystem, where all users should have the opportunity to be part of it". Ethereum is often used by crypto developers because it aims to make blockchains more useful than a simple database with transactions.

The toll-free trade from Binance takes place after Bitcoin, the industry's flagship cryptocurrency, fell from almost $ 70,000 to low-levels under $ 20,000, while the failure of the StableCoin Terrausd triggered sales that caught many large industry names, including the lenders Celsius and Blockfi and Hedfonds Three Arrows Capital.

"This approach [to free trading] has also been seen in the past in traditional finance, where a well -capitalized newcomer strives for the dominance with the temptation of commission -free trade for a limited period," said Rufus Round, Chief Executive by Globalblock Digital Asset Trading, a broker.

Binance said that he would "miss some fees", but the company "still has strong reserves".

Binance has already expanded its leading role on the cryptom market this year. According to CryptoCommare, the stock exchange has a commercial market share of 55 percent in cash trading, an increase of almost 10 percentage points since January. The next competitors, Coinbase and FTX, have shares of less than 10 percent.

In response to the break-in prices for digital assets, competing crypto exchanges have started to rekindle their long-term business strategies. Coinbase said that almost a fifth of his revenue comes from services and subscriptions in the second quarter, even though it had a net loss of $ 1.1 billion.

"The temporary waiver of fees for their most important trading couples can be seen as concessions to attract more flow in the current environment with a low trading volume, which [Binance] will indirectly benefit from increased traffic in other trading pairs and other product lines and offers," said Peter Habermacher, CEO and co -founder of the cryptofozus Capital.

However,

ftx has drawn the rest of the crypto industry aware that it is trying to attract customers, with a number of top -class sports sponsorships and securing a purchase option for the struck blockfi.

"I could imagine [Binance] observe the expansion of FTX into all possible areas and think that you have to strengthen your game," said Ilan Solot, partner at the Risk capital company Tagus Capital.

Nevertheless, Arntzen from Julius Bär said that free trade may indicate that Binance expects the size of the market to remain small in the near future.

"This change of rank from Binance could be the beginning of a trend of free trade among the large centralized stock exchanges," he said. "In the future we could have a situation in which toell trade is more the norm than the exception, similar to how we saw it in the world of traditional finances."