For the next 30 days, anyone trading ether using BUSD will not incur any transaction fees from Binance.
This action is being taken in advance of an upgrade to the Ethereum blockchain.
Merge proposes moving away from a conventional digital ledger technology known as “proof of work,” which consumes a lot of energy, and toward an architecture known as “proof of stake,” which would significantly lower the carbon effect of the technology.
What Does Binance Offer?
Binance is capitalizing on the effect that the cryptocurrency crisis this year has had to recruit new users.
In the beginning of this year, Binance’s CEO Changpeng Zhao made the statement that the majority of the company’s revenue comes from trading fees, the amount of which varies depending on the price of bitcoin and other cryptocurrencies.
This summer, Binance began offering free trading in cash transactions using the euro and the pound.
According to CryptoCompare, the market value of BUSD increased by 8% to reach $19 billion in the space of eight weeks.
BUSD is a rival cryptocurrency to tether and Circle’s USDC.
According to Sipho Arntzen of Julius Baer, Binance’s conduct may be an attempt to capture the market.
The latest offer that Binance is offering will expire on September 26.
It referred to the Merge as a significant landmark for ethereum and the Web3 ecosystem.
The effort was taken by Binance when the price of bitcoin dropped from around $70,000 to approximately $20,000.
The failure of the stablecoin TerraUSD sparked a wave of sell-offs that wiped out a number of well-known companies in this area, including Celsius, BlockFi, and Three Arrows Capital.
Broker Rufus Round said that this tactic has also been seen in conventional finance, namely in situations in which a well-capitalized newcomer seeks dominance with the opportunity of commission-free trading for a brief period of time.
Binance will lose some money, but the company has considerable reserves to cover such losses.
This year has seen an increase in Binance’s market dominance.
According to CryptoCompare, the exchange now has a market share of 55% in the cash trading space. This is an approximately 10% increase since January.