Binance thinks big and starts reducing transaction fees on Ethereum to 0 ! The popular decentralized exchange platform is trying to elevate itself even more as the undisputed leader. With this news, the CEO, Changpeng Zhao, hopes to accelerate the symbolic milestone of 1 billion users on the platform, for their crypto exchanges.
Even if this operation has already been done on other tokens like BNB and BUSDT, ETH has a special status today. The next move, The Merge, will enable it to offer near-zero transaction fees. Answer, Binance hopes to encourage players to trade Ethereum on their platform by complying with the new Ethereum price standards.
Transaction fees: a frantic race from Robin Hood
Binance is not the first platform to offer zero transaction fees. Robin Hood democratized this service, which allowed him to gain such a large market share. Even if the popularity of GameStop has greatly affected its current popularity, it is still a pioneer in this field.
A competitive problem above all else
Changpeng Zhao says that his intention is only philanthropy, but he does not deny that this is also a golden opportunity for him. If cryptos can be believed to have real value as a way to break free from traditional finance, Binance also has a lot to gain.
When you look at the market, reducing transaction fees is crucial in terms of Binance’s competitiveness. Many other platforms like Strike go 0 cool get the market. Crypto wallet services are no exception and do everything to maintain their user share.
New people like Swan Bitcoin threaten the hegemony of the big structures by limiting intermediaries. They offer to buy Bitcoin in seconds just with a bank card. For major cryptocurrency platforms, it is necessary at all costs to consolidate its position as a leader, even if it means making concessionss. Binance makes up for it by taking commissions on futures trading at 10% fees. It also does this for spot trading fees, as well as other stablecoins.
Binance takes advantage of The Merge to acquire new customers
Binance has calculated its move well i recommending this reduction Stack at the time when The Merge of Ethereum will come to an end. The number of transactions is at an all time high and that pushes every other product in the industry. At the moment, ETH is the star crypto. It greatly surpasses Bitcoin in terms of the number of transactions made. It will have reached a historical peak of 1.679 M trades even on July 26, 2022. Currently, ETH is stabilizing around 1 million trades.
ETH Trading Volume in the last 3 months – Ycharts.com
While advertising “0 fees”, Binance hopes to gain many users in the long run. It remains to be seen whether the strategy adopted by the company will bear fruit.
Binance maintains its lead with a solid strategy
Binance stands out from the rest for its stability and the relevance of its offerings. The company has managed to stay in the crypto landscape without making waves. Today is the safest platform to exchange your digital currencies.
For Binance, this type of offer is not really harmful. Most of the profits are based on stables except on this type of asset. So Binance has got another income that allows it to offer this kind of fee for ETH without restrictions. It should also be noted that the latter created their own stablecoin in BUSD. This gives them a definite advantage over their competitors.
Finally, it looks like Binance will succeed in its bet by establishing its dominance in the market a little more. With zero fees, the remaining investors may rest on the most successful platform at the moment.
Should you buy ETH on Binance?
With such notification, there really isn’t much stopping you from buying ETH on Binance. The platform offers everything you need, while saving you transaction fees. With The Merge just around the corner, you can even invest a little in futures shorts. They will compensate for potential loss of ETH. In short, Binance is suitable for all investors and all types of strategies.
Crypto-assets are a risky investment.
If you want to monitor the evolution of the price of Ethereum, we recommend that you go to our page that lists the price of cryptos in real time.
