It took a long time for equity trading fees to come down. The pricing cycle may be happening at a quicker pace in the crypt.
The U.S.-based company that keeps the better-known Binance at arm's length announced this week that it was cutting trading fees for certain trading pairs to zero. The move made waves because of the large businesses that have been built by the market for facilitatingcryptocurrencies.
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During regular trading on Wednesday, shares of U.S.cryptocurrencies exchange Coinbase lost almost 10% of their value.
What feels notable at this juncture is that it appears the market did not anticipate the directional move by a U.S. exchange to lower its aggregate fee profile and reduce some trading emoluments to zero. But the writing has been on the wall for some time when it comes to trading fees; Binance.US is merely continuing a longer trend.
Consumer trading fees led to the creation of a large company.
Retail and institutional traders had the same amount of coins on the platform, with $123 billion and $134 billion. In the first quarter of the year, institutional trading volume was much larger than retail trading, totaling $235 billion.
Institutional traders made more money than retail traders. Nope, that's right.
It's the opposite. In the first quarter of 2022, retail transaction revenue was nearly a billion dollars, while institutional activity was worth less than half that. Retail traders pay fees to buy and sell digital assets. It isn't clear what impact the change will have on the company's fee posture.
The exchange is trying to take over the place where the company is based.
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