Binance has launched a new program designed to boost liquidity for altcoins, addressing the growing need for more efficient trading options in this sector. The ‘Spot Altcoin LiquidityBoost Program’ incentivizes market-makers with up to 1 basis point rebates on selected altcoin/USDT pairs. This initiative aims to improve liquidity for thinly traded altcoin pairs, potentially reducing volatility and trade costs. Binance emphasizes its focus on smaller liquidity providers while differentiating itself from other exchanges offering lower rebate rates. The program kicks off with the INIT/USDT pair, with plans to expand to other altcoins in due course. This could significantly impact market dynamics by fostering better pricing, leading to more competitive trading and ultimately, increased adoption of alternative cryptocurrencies. While analysts anticipate broader market ripple effects, Binance’s policy opens up opportunities for smaller players, challenging the dominance of BTC and ETH. The program was announced by Catherine Chen, Head of Binance VIP & Institutional, who highlighted its response to market participant demands. ‘We are responding to the demand from market participants, particularly small and medium-sized liquidity providers, who want the choice to focus on altcoin market-making without needing to handle large-scale bitcoin or other major cryptocurrency trading,’ said Chen. – Binance Official Blog