The decision by Binance, the world's largest cryptocurrency exchange, to reduce the use of digital stablecoins BUSD and TUSD due to regulatory hurdles has sparked positive sentiment among traders. The Tether (USDT) market on Binance is rising again and signaling the beginning of a possible surge in the Bitcoin and crypto markets, according to data from Kaiko.
The market for the stablecoin TrueUSD (TUSD) on crypto exchange Binance has declined from more than 30% to just 5.6%, according to digital asset data provider Kaiko. The TUSD stablecoin daily trading rate has even fallen below the BUSD market string Binance plans to end its support in early 2024.
Meanwhile, USDT and FDUSD trading volumes on Binance have increased significantly, with the USDT market reaching 80%. The FDUSD market also rose after Binance announced fee-free Bitcoin and Ethereum trading with the FDUSD stablecoin.
The crypto market sell-off in September was expected when Binance decided to make changes to Bitcoin trading with no fees for BTC/TUSD trading and margin. Merchants have left TUSD because they have to pay taker fees, which are no longer free.
Binance appears to be ending its fee-free Bitcoin trading program for TUSD, reducing its support for the TrueUSD (TUSD) stablecoin digital currency due to several issues. Experts have voiced several problems with TUSD, which has created a stir in the crypto market.
The increase in USDT trading volume will avoid unnecessary risk, bringing back the lost trading volume on Binance. This will help bring some upward momentum in the crypto market and solve the liquidity problem.
Analysts are positive about the start of a bullish cycle with the Bitcoin price above $26,000.
