The trading volume of Binance’s bitcoin ( BTC ) denominated by ArchBlock stablecoin TUSD, which is dollar-pegged and backed by ArchBlock has increased over the last four weeks since the crypto exchange implemented zero fees on the pair on 23 March while simultaneously reintroducing charges for all other pairs.

The trade in TUSD remains the most liquid. It allows large orders to be executed with relatively less impact than the TUSD.

Conor Ryder is a research analyst with Paris-based Kaiko. He said that in a recent market update, “Market depth data shows us that BTCUSDT remains the king of liquidity, and market makers are more comfortable with Tether than TUSD.”

Market depth is a common metric used to assess liquidity conditions. It’s a collection buy-and-sell offers that are within 1% or 2 % of the mid-price, or the average between the ask and offer prices.

The greater the depth of the asset, the liquid it is and the lower the slippage. Slippage is the difference in price between the price expected at the time a trade was placed and the price actually executed. Slippage is most common when the market has low liquidity or volatility.

The most liquid pairs are still the tether ones, even though depth has increased in BTC/TUSD. (Kaiko) (Kaiko)

Chart shows that BTC/USDT had $30 million of liquidity at 1% depth in the last week, which is 200% more than BTC/TUSD. Other traders may be better off placing large orders on the BTC/USDT pair than the BTC/TUSD.

TUSD has seen its market depth increase from virtually zero to $10 Million in just a month. It now surpasses BUSD as the second most liquid pair on Binance.

Since Binance eliminated trading fees for TUSD pair, the market share of BTC/TUSD has increased dramatically. (Kaiko) (Kaiko)

Binance’s bitcoin market volume last week was 50% BTC-TUSD.

“As long as BTC-TUSD trading is free, TUSD will be a top-tier stablecoin, regardless of whether or not people like it. TUSD has benefited from increased volumes, similar to Binance’s favoring of BUSD. However, the reasons Binance gave TUSD these gifts are not clear.

Sheldon Reback is the editor.