The leading crypto exchange, Binance is making efforts to increase the liquidity of Bitcoin and Ethereum in the crypto market. Low liquidity has been seen to have a deleterious effect on BTC and ETH price and this is something both exchanges and traders have been keen to counter. This week, Binance announced plans to launch additional BTCUSDT and ETHUSDT daily options within their Binance Option product with the contracts being European-style options launching on May 15th.

In addition to the daily options launch, traders and investors are also eligible for WBTC Combo Rewards when they add liquidity to the WBTC/BTC and WBTC/ETH liquidity pools. The reward program, running from May 11th through June 10th makes all eligible for BNB Rewards and Pool Rewards as well. Binance is also updating the tick size on some of its spot trading pairs from May 18th and this should, in theory, improve market liquidity and the user trading experience.

The decrease in liquidity primarily seems to be due to the exit of leading market makers such as Jump Crypto and Jane Street from the US and the current regulatory crackdown which doesn’t have users feeling too secure. Binance’s spot-trading volumes have seen a decrease in market share to 51% in May from 73% in March according to Bloomberg. Meanwhile, the market shares of Huobi, OKX, and South Korean exchanges have increased. Binance and Coinbase are, likely due to this, feeling the impact of the decreased liquidity as reported.



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