Binance's new liquidity initiative targets the altcoin market

The cryptocurrency exchange Binance announced a new liquidity program in the spot market aimed at small and medium market makers. Named 'Altcoin Liquidity Boost', the initiative is the broker's first large-scale program to focus its incentives exclusively on trading pairs with altcoins. The goal is to increase market depth in this segment and create a more stable trading environment.

The program will offer rebates (fee refunds) ranging from 0.005% to 0.01%, depending on the trading volume of each liquidity provider. Binance claims that with this move, it seeks to change the current logic of existing programs — which traditionally favor large operators — and promote a more balanced structure.

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Higher incentives for altcoins

According to the exchange, the new program aims to offer one of the largest incentives in the industry for liquidity in altcoins. To obtain 0.5 basis points in rebates, the market provider must ensure at least 0.5% of liquidity participation in the traded pairs. To achieve 1 basis point, it will be necessary to reach at least 1% participation. Applications start on June 9, and rebates will take effect from June 17.#BinanceAlphaAlert

Binance highlighted that its previous liquidity programs typically required coverage of all pairs, including Bitcoin and large cryptos, which ended up excluding smaller participants. With the new approach, the intention is to open space for strategies dedicated to altcoins, allowing for greater diversity among ecosystem participants.

Flexible participation model#Binance

The program was designed to cater to various profiles of market makers. Investors who have traded more than $20 million in the last 30 days, whether on the Spot platform, Margin, or other Binance services, and who present 'quality liquidity strategies' will be able to apply. Thus, smaller or medium-sized operators who meet the criteria can act as liquidity providers profitably.#BlackRockETHPurchase

Initially, the program will cover pairs with 18 altcoins. Binance stated that the list will be regularly updated based on market demand. The initial pairs with USDT include: INIT, EOS, HYPER, PARTI, ICP, KERNEL, CFX, W, KMNO, IOTX, ONDO, TON, FIL, WCT, BABY, SXT, SYRUP, and STO.

An innovative model for market makers

Catherine Chen, head of the VIP & Institutional area at Binance, explained that the new program was created in response to the growing demand from smaller operators. According to her, the focus on altcoins, outside the traditional axis dominated by Bitcoin, opens space for more efficient market-making strategies.

In Binance's assessment, the initiative should help reduce price volatility (slippage), increase the depth of order books, and improve operational efficiency. An altcoin ecosystem with more stable and well-distributed liquidity could benefit both investors and projects, creating a more evolved trading environment.