Binance, the largest cryptocurrency exchange in the market, announced this Friday (10) more than doubling the withdrawal fees of the stablecoins USDT, USDC, TUSD and BUSD.
According to the exchange, the increase reflects a change in the Tron blockchain (TRX), dubbed TIP-491. That is, the change in withdrawal fees for the coins mentioned above only affects the Tron network and Binance’s decision was not one-sided.
Moving on, Tron itself (TRX) was the main one affected by the change. After all, your withdrawals are now 15 times more expensive on Binance and changes in the network itself are already being noticed.
Update on Tron (TRX) increases transaction costs
Tron (TRX), currently the 15th largest cryptocurrency by market capitalization, is often used as an alternative to Ethereum (ETH) to handle stablecoins. For example, today there is $37.13 billion USDT on Tron, while on Ethereum this number is $30.28 billion, for all its prominence and size.
One of the main reasons for this is precisely the cheaper transaction costs of Tron compared to Ethereum. Despite this, Tron’s TIP-491 improvement will increase network speeds to prevent attacks.
“In this TIP (Tron Improvement Proposal) we propose a mechanism to dynamically adapt the energy consumption of a contract to the use of the implementation resources”indicates the approved proposal.
Binance raises withdrawal fees for four stablecoins
Therefore, as Tron has increased the transaction fees of its network, exchange Binance is adjusting the fees for withdrawing cryptocurrencies from this blockchain.
Withdrawals of Tether (USDT), USD Coin (USDC), and TrueUSD (TUSD) are now charged $2.60 per order. Previously, this amount was only 1 dollar.
The withdrawal fee for the stablecoin Binance USD (BUSD) has increased from $0.80 to $2.2. That is, an increase of almost three times for all of them. Stablecoin withdrawal rates on other networks are not affected as shown in the image below.
Finally, Tron itself (TRX) is the most affected. According to Binance, their withdrawal fees have increased 15 times, from 1 TRX to 15 TRX (around R$15 at the current exchange rate).
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
