How Binance Bucks the Trend With its Higher Trading Volume
Major crypto exchange Binance has bucked trend when it comes to trading volumes during the bear market, recording sharp increase in volume on popular trading pairs even as crypto prices have plummeted
A rise in trading volume on Binance made the exchange to eliminate trading fees on some of its most popular bitcoin & Ethereum pairs earlier this year, leading to a surge in activity on the platform.
Binance first launched a zero-fee promotion on certain BTC pairs in July, before it followed up by also removing trading fees on popular ETH pairs in August this year.
Who has been around crypto market for few years knows, trading volumes always fall during bear markets & longer the bear market lasts, the more volume falls, as traders simply lose interest in profit.
Despite this, the surge in volume seen on Binance in recent months has been so strong that aggregated volume across exchanges for the most liquid BTC and ETH pairs during this bear market has held up.
However, when removing Binance from the group of exchanges that make up the aggregated volume, it becomes clear that it is this exchange alone that has kept aggregated volumes up.
This observation was also pointed to by crypto researcher Kaiko, which in a newsletter from Monday noted the “strong divergence” in activity between Binance and 13 other large crypto exchanges.