Binance’s Trading Volume Soars with FDUSD Stablecoin Pairs Leading the Charge
The trading pairs involving First Digital USD (FDUSD) have seen a surge in trading volume on Binance, reaching its highest share ever in spot trading volume on the exchange.
On February 12, FDUSD pairs accounted for 38% of Binance’s total spot trading volume, marking a substantial 42.6% increase compared to the previous month, according to data from The Block Pro.
The popularity of FDUSD on Binance can be attributed to several factors.
Firstly, the BTC/FDUSD trading pair is free to trade, which naturally draws attention and contributes to its growing usage.
Additionally, most FDUSD pairs on Binance do not have any maker fees, further incentivizing traders to engage with these trading pairs.
This combination of cost-effectiveness and accessibility has likely played a significant role in driving up the trading volume of FDUSD pairs on the exchange.
Moreover, the recent discontinuation of support for Binance USD (BUSD) on the platform may have motivated users to convert their holdings into the newer stablecoin, FDUSD.
FDUSD (First Digital USD) is a 1:1 USD-backed stablecoin launched in June 2023 by FD121, a subsidiary of First Digital, a Hong Kong-based custodian and trust company.
Binance subsequently listed FDUSD a month later, offering traders the advantage of zero trading fees for this particular stablecoin.
The move came as Binance decided to cease support for BUSD, its previously endorsed stablecoin, following Paxos’s end of its relationship with Binance due to regulatory pressure from the SEC.
FDUSD, launched by a Hong Kong company, has replaced BUSD on Binance. On February 12, trading pairs containing FDUSD accounted for 38% of total Binance spot trading volume, an increase of 42.6% compared to the previous month. Binance’s
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