Binance halts TUSD zero fee promotion in September, will the market repeat the second quarter slump?

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Binance Cancels TUSD Zero Fee Promotion

Binance recently announced that it will cancel the BTC/TUSD zero fee promotion at 08:00 on September 7th Taipei time. Market takers will be charged based on their VIP level, while market makers will still enjoy zero fees.

Meanwhile, the zero fee promotion for placing and taking orders for FDUSD, which was listed on Binance at the end of July, continues.

Due to Binance's removal of BUSD from its platform due to regulatory issues, the market value of TUSD tripled from around $940 million in February to $3 billion, but questions have been raised regarding the relationship between TUSD and Justin Sun.

• Why BUSD Was Targeted: New York Department of Financial Services explains the ban: Unauthorized issuance of Binance-Peg BUSD not issued by Paxos

• In-depth Report: Investigation into TUSD and Justin Sun's affiliated companies! Crypto investigator Adam: Trusting TUSD means trusting Justin Sun

The market value of FDUSD has also seen significant growth, rising from $20 million in August to $323 million, with trading volume primarily concentrated on Binance according to CoinMarketCap.

Will Binance's Removal of Zero Fees Cause a Market Crash?

Foreign media Cointelegraph expressed concerns about a market downturn.

Their argument is that since Binance suspended the BUSD fee waiver on March 22nd, trading volume on Binance has been declining, with market share of spot and futures trading in Q2 falling below 60%, and the total crypto market value continuing to decline.

However, trading volumes across all exchanges have shown signs of decline, including Coinbase, Kraken, OKX, and Huobi, with Q2 trading volumes dropping by over 50% for most exchanges, indicating an overall contraction in trading activity.

Looking at Binance's current spot trading volume, TUSD trading volume is still higher than USDT, second only to USDC, but whether the cessation of zero fee promotions is related to the downturn remains to be confirmed by the market.