The officials at Binance US have announced that they have removed trading fees for Ether (ETH) transactions. With immediate effect, the ETH transactions would incur no trading fees.
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Binance US’ Zero Fee Price Model Continues
The trading fees removed by Binance US for ETH are part of their “zero fee price model”. The officials have made it clear that starting today, no trader will be charged a fee for trading Ether.
The new announcement is going to impact four spot trading pairs for Ether. These pairs include ETH/BUSD, ETH/USDC, ETH/USDT, and ETH/USD.
For those who are well aware of the cryptocurrency terminologies, it is the gas fees that have been removed by Binance US for the ETH transactions.
Whether the traders sell or buy Ether through Binance US, they will no longer be charged with any gas fees.
Binance US is Following Robinhood
By taking this step, Binance US has followed in the footsteps of Robinhood. It is a major crypto and stock trading application that is based on smartphones.
Still, it could be said that Binance US has taken too long to follow Robinhood’s lead. It was back in 2018 when Robinhood made a similar announcement about Bitcoin.
In 2018, Robinhood announced that they had removed all kinds of trading fees for the Bitcoin spot market.
Following the announcement, Robinhood removed trading fees for BTC/BUSD, BTC/USDC, BTC/USDT, and BTC/USDC.
It is worth mentioning that Binance US has been operating as an independent entity since day one. Many end up confusing it with the Binance exchange, thinking that operates under the Binance flagship.
In reality, the Binance US exchange operates independently and as the name suggests, it is for users based in the United States.
However, the exchange does have the same logo as the global cryptocurrency exchange Binance.
Previous Decision of Binance US
ETH is the second asset that the Binance US exchange has announced that has removed the trading fees. The first cryptocurrency that they removed the trading fees for in the zero-fee price model was Bitcoin.
Brian Shroder, the CEO and the President of Binance US is the one who initiated the model and has decided to remove Bitcoin and Ether.
By doing this, Binance US has taken a step to improve the overall reputation of its brand. Their exchange is now among the entities charging the users with the lowest fees.
Ethereum Blockchain to Benefit from the Step
The Ethereum blockchain is also going to benefit tremendously from the step taken by Binance US. The entire blockchain has been facing a hard time ever since the beginning of 2021.
Although Ether has remained the second-largest trading asset and has also hit all-time highs in 2021, still, the Ethereum blockchain has not grown much.
This is because, for the past couple of years, the blockchain was facing several issues that cost the network substantially. The exchange kept facing latency, scalability, and high trading fee-related issues.
Although the Ethereum developers tried fixing the problem with the implementation of the Merge in 2022, it was not able to garner much attraction.
This is mainly because they were able to execute the Merge implementation at the worst time possible. The year 2022 has been nothing but a failure for the entire cryptocurrency industry.
It has been plagued with one major incident after another. With people losing their interest in Ethereum and the entire crypto market, they have continued leaving the market with very low profits in sight.
With the implementation of zero fees by Binance US, investors will definitely start coming back to the Ethereum blockchain.
With flow increasing on the blockchain, it is going to grow in adoption as well as in all other aspects.