With a new initiative, Coinbase is trying to draw in large volume traders by lowering trading fees and providing a sixty-day fee-free period for those moving from other platforms.
A recent blog post claims that the incentive gives traders with monthly trading volume of over $500,000 a quick path to reduced cost tiers, allowing them to pay as little as no maker fees on spot trades on Coinbase Advanced.
The action is a part of Coinbase’s attempts to increase its market share, particularly as it gets ready to release its 2023 fourth-quarter earnings later this month.
Due to lower trading volumes, the company has seen a decline in transaction revenue over the last year, and for the last quarter of 2023, it expects revenue patterns to be similar. Coinbase highlights how important fees are to traders when selecting a cryptocurrency exchange. The company stated:
“We know that fees are one of the most important factors when it comes to selecting and trading on a crypto exchange,”
To benefit from the reduced fees, VIP and high-volume traders from other exchanges must provide proof of their trading volume. After the qualifying traders’ 60-day no-cost period, continuing fees will be determined by Coinbase’s monthly trading volumes and will feature tiered charge structures.
A new 0.1% charge for institutional clients transferring over $75 million from USDC to USD net was also announced by Coinbase. The business, which mostly serves the United States, is growing globally. It has lately expanded its services to more than 20 African countries and obtained licenses in a number of other countries, including France, Spain, Singapore, and Bermuda.
