Demand for FDUSD Stablecoin Remains High Despite End of Fee-Free Trading on Binance
Trading volume for pairs involving the FDUSD stablecoin has decreased since Binance ended its fee-free trading promotion, yet user demand shows no signs of decline.
Demand for FDUSD Stablecoin Remains High Despite End of Fee-Free Trading on Binance. Photo: Binance Academy
On April 25th, Binance adjusted spot trading fees for several token pairs to incentivize trading, most notably ending the fee-free trading promotion for the FDUSD stablecoin.
Despite a decline in trading volume since the end of this promotion, FDUSD has maintained its popularity, capturing a 33.55% spot market share on Binance as of June 2024.
Market share of FDUSD on Binance. Source: The Block (17/06/2024)
The BTC/FDUSD token pair's popularity has also remained robust, achieving a trading volume milestone of $1.9 billion within a 24-hour period as of April 20th (Vietnam time). This figure surpasses the $1.1 billion volume of the BTC/USDT pair and $3.98 million volume of the BTC/TUSD pair. However, USDT maintains dominance over other spot assets.
1-hour chart of BTC/FDUSD pair on Binance at 10:05 AM on 20/06/2024
1-hour chart of BTC/USDT pair on Binance at 10:05 AM on 20/06/2024
Users continue to trade FDUSD token pairs actively due to the absence of maker fees. USDT, being a larger and more established stablecoin, remains popular even without any promotional incentives.
Following the suspension of BUSD operations, Binance selected FDUSD as a replacement solution in July 2023, issued by a Hong Kong-based financial firm. To promote the new stablecoin, Binance delisted several other favored stablecoins beforehand. FDUSD was notably listed with advantageous fees, most notably with the BTC/FDUSD pair enjoying fee-free trading.
Binance has actively promoted FDUSD, with stablecoin pairs accounting for over 35% of spot trading volume on the exchange in April 2024, surpassing TUSD's peak. This effort underscores Binance's commitment to FDUSD as it replaces BUSD. In April 2024, FDUSD was also highlighted within the Sui ecosystem, becoming the first stablecoin on this blockchain network pegged 1:1 to the US dollar.
Previously, in February 2024, FDUSD trading pairs set records on Binance, capturing a 38% spot market share. In contrast, BUSD pairs held a 39% trading volume share on the exchange in December 2022. This illustrates FDUSD's rapid adoption and competitive standing against BUSD, showing sustained usage with no signs of decline.
