By Adedapo Adesanya
Cryptocurrency exchange Binance has announced that it now supports zero-fee trading for Ethereum (ETH), the second largest cryptocurrency by market value.
According to the exchange, its users will be able to trade ETH against the native Binance USD (BUSD) stablecoin for free starting from Friday, August 26.
Binance traders will be able to take advantage of the cut in fees for a month.
The world’s largest cryptocurrency exchange by volume also cut trading fees to zero for various Bitcoin pairs in July.
The move was linked to the fifth anniversary of the company.
Binance initially dabbled in zero-fee trading in late June with its US-based subsidiary.
It eliminated fees for American traders in an attempt to attract more users and chip away at the market share of Coinbase, which remains the crypto market leader in the US
Due to falling prices and waning enthusiasm for cryptocurrencies, exchanges are seeking new ways to retain their user base.
It remains to be seen whether Binance will start a new trend among crypto exchanges.
The idea of zero-fee trading was initially popularized by the stock trading app Robinhood and has forced such legacy players as Charles Schwab to follow this strategy in a few years.
Binance claims that it introduced zero-fee trading in order to make crypto more inclusive and accessible, adding that there is no ulterior motive behind the move.
The exchange claims that its revenue model remains sustainable, meaning that it is not seeking to rebalance its profits.
Binance also says that its decision to temporarily cut fees to zero is not just a cheap marketing ploy.
As of the time of this report, ETH is trading at 3.66 per cent higher at $1,711.85.
Modupe Gbadeyanka