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Bitcoin Trading Volume Holds Near 1-Year Highs

Data shows that Bitcoin trading volume has hovered near one-year highs recently as activity on Binance remains high after the fee was removed.

Bitcoin’s 7-day average trading volume has remained at high levels in recent weeks

According to the latest weekly report from Arcane Research, about 80% of the latest activity on the BTC network is powered by cryptocurrency exchange Binance.

“Trading volume” is an indicator that measures the total amount of Bitcoin moved on the blockchain on a given day.

When the value of this metric is high, it means that a significant number of coins are changing hands on the network right now. This trend may suggest that the chain is quite active these days as investors are attracted to the cryptocurrency.

On the other hand, low values ​​of the indicator indicate that the network activity is not so high at the moment. This type of trend could be a sign that the general interest around cryptocurrency among traders is currently low.

Now, here is a graph showing the trend of Bitcoin trading volume over the last year:

The value of the metric seems to have been high in the last few days | Source: The Arcane Research Weekly Update – Week 30, 2022

As you can see from the chart above, Bitcoin transaction volume has been high for the past few weeks. Currently, network activity is just below a one-year high. However, it is likely that not all of the volume at this time is caused by organic activity.

The chart also includes data on Binance’s share of the total volume. It seems that when the value of the indicator rose to the current high levels, the contribution of the cryptocurrency exchange increased simultaneously.

The reason behind this is that about three weeks ago, exactly when these increases were seen, Binance lowered the trading fee for some Bitcoin trading pairs.

Seeking to exploit this fact, many merchants have indulged in “wash trading” to unlock higher fee levels on the platform. Such activity is considered inorganic and is therefore falsely inflating the actual volume.

However, three weeks later, volumes are still unchanged, and while Binance’s share remains around 80%, the report notes that a significant portion of the volume may come from organic activity.

This activity would come from traders who prefer to trade on Binance due to the removal of the fee, which would help keep the crypto exchange’s market share fairly high.

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Binance Eliminates Bitcoin Trading Fees on 5th Anniversary

The world’s largest cryptocurrency exchange will eliminate bitcoin spot trading fees effective July 8, as it celebrates its fifth year of operations.

Binance will eliminate bitcoin trading fees on its global platform to celebrate its fifth anniversary.

The move by the world’s largest cryptocurrency exchange comes on the heels of a similar strategy adopted by its US subsidiary, Binance.US. At the end of last month, the US company eliminated fees for spot bitcoin trading, as it sought to increase its presence in the country and generate competition. Shares of American rival Coinbase took a hit after the feature was announced.

Binance’s move covers more ground than its American counterpart. The global exchange said in a press release on Wednesday that from July 8, 2022, users will be able to trade fee-free spot BTC in 13 pairs, between fiat and stable currencies, including the euro and pound sterling. , as well as both. Most popular stablecoins on the market: USDT from Tether and USDC from Circle. Traders can get the benefit of reduced fees with US Dollars only on Binance.US.

“In keeping with our user-first philosophy, Binance has always strived to offer the most competitive fees in the industry,” Binance Founder and CEO Changpeng Zhao said in a statement. “At its core, Binance is an inclusive platform that takes accessibility into account. Removing trading fees on selected BTC spot trading pairs is another move in this direction.”

Other fiat currencies that will also be subject to the new free rule include the Brazilian real, the Australian dollar, the Russian ruble and the Turkish lira. The feature will be available “until further notice,” Binance said.

Despite providing a convenient gateway to Bitcoin, centralized exchanges can become a security hole if users take advantage of them as escrow providers. Those interested in reducing risk can mitigate exposure to third parties by insuring their own bitcoin, which, despite the learning curve, could pay off in the long run.