The share prices of Coinbase, a publicly-listed cryptocurrency exchange, have experienced a dip in the stock prices. Coinbase’s share prices experienced a dip after an announcement made by one of its rival cryptocurrency exchanges, Binance.US.
Binance.US is the largest cryptocurrency exchange with respect to market valuation. The cryptocurrency exchange has made an announcement that has stolen away from the spotlight from Coinbase despite the exchange being listed publicly.
Binance.US Defeats Coinbase
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Binance.US has just announced that it has reduced the transaction fees for particular trading features to zero. This means that the users will be able to trade Bitcoin and other cryptocurrencies through the particular features without paying any fees.
Following the announcement of no fees by Binance.US, the stock market observed an almost 10% drop in the share prices of Coinbase. Binance.US has announced that the users will incur no transaction fees when interacting with the spot trading features for Bitcoin and stablecoins.
The stablecoins announced by Binance.US are Binance USD (BUSD), USD Coin (USDC), and Tether (USDT).
Dip in Coinbase’s Share Prices
To be precise, the share prices for Coinbase have experienced a 9.7% dip in the stock market. Coinbase wasn’t the only cryptocurrency trading platform that ended up facing a dip in stock prices. Robinhood also ended up facing a dip but it was a slight 1% dip.
Binance.US seems to have made a very strategic move given the current situation of the cryptocurrency market. At present, the cryptocurrency market is plagued by constant pressure and a lack of interest from the investors’ side.
However, the affiliate of Binance has made this move to attract more investors to its corner. It has given investors the opportunity of generating higher profits by investing in trades that cost zero transaction fees.
The announcement is a huge opportunity for the Bitcoin investors who had turned bearish given the recent dip Bitcoin had suffered. It had reportedly been pushed down to the $18k level, which was the lowest it had experienced since 2018.
Coinbase’s Strategy has Become Stale against Binance
Coinbase has been in competition with Binance ever since it came into being in 2017. It was in April 2021 when Coinbase went public hoping it would gain more mainstream attention. Unfortunately, the crypto sector ended up facing a demise a month after Coinbase went public.
From then until now, the general situation of Coinbase has been in the negative zone. With the recent announcement, Binance.US has dealt a low blow to Coinbase and it’ll find it very difficult to recover from it.
Coinbase will soon need to come up with something special and appealing to the public investors so it can increase its revenue, and exhibit a surge in its trading prices.
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