The cryptocurrency market suffered a lot in recent months, but a recent surge has given bulls a motive for optimism.
Binance’s spot trading volume was dealt a crushing blow in Q2, as the exchange’s decision to reintroduce fees for BTC pairs caused a major drop-off in activity.
Binance’s decision to end its zero-fee trading BUSD for TUSD was a blow to users, but it was necessary to comply with regulatory requirements.
Spot trading volume for Bitcoin (BTC) has hit its lowest levels since Q4 2020 when the cryptocurrency was still recovering from its 2018-2020 bear market. This decrease in trading volume may be a result of both Binance’s move to reintroduce fees on BTC trading pairs and more intense regulatory scrutiny of the cryptocurrency market.
Additionally, Binance’s performance in the second quarter was impacted by increased regulatory pressure in various nations, including the US, Europe, and Nigeria.
Despite the challenges of exiting several European markets, Binance remains focused on compliance with Europe’s forthcoming MiCA regulations. Binance stated that the company was “committed to working with regulators to ensure that we are operating in a compliant manner.”
The cryptocurrency market was hit hard in Q2. Binance’s rivals, OKX, Coinbase, and Kraken, all lost more than half of their activity, with spot trading plummeting by more than 50%. Trading in euro-denominated pairs was particularly affected, falling to two-year lows.
The trading activity on spot Bitcoin ETF products has increased significantly in recent months, as the mania for these products has gained steam. For the fifth time in the history of the ProShares Bitcoin Strategy (BITO) fund, trading volume exceeded $500 million per day.
