Binance’s Liquidity Program Cuts Altcoin Trading Friction—Here’s How

Forget hunting for buyers—Binance’s liquidity pools are slashing spreads on obscure altcoins. The catch? You’ll need to trust the same market makers who probably front-ran your last trade.

How it works: Dump your low-cap bags into Binance’s program, and let their algorithms fake sufficient volume. Just don’t ask who’s on the other side of your ‘liquid’ trade.

Pro tip: Watch for the inevitable ‘participation rewards’—nothing boosts fake liquidity like a little BNB bribery. Classic crypto.

Program Opens New Opportunities for Smaller Market Makers

Historically, Binance’s liquidity programs have favored large capital market makers, leaving mid-level participants struggling to compete. The new program is part of Binance’s strategy to deepen liquidity in altcoin trading and reduce price volatility.

Participants will focus only on altcoin pairs without the obligation to quote major cryptocurrencies like BTC or ETH. This flexibility offers a direct incentive to teams interested in experimenting with niche strategies. The program aims to bolster the exchange’s competitive edge amid a globally rising demand for altcoins.

Catherine Chen, head of the VIP and institutional unit, highlighted that innovative strategies in the lower segments are often overshadowed by dominant players. She noted that incentives in the program could break the cycle as decreasing liquidity and sudden price swings have been undermining investor confidence.

Initial tighter spreads on volatile pairs such as INIT/USDT, EOS/USDT, and others will provide fairer prices for individual investors, bridging the gap between small players and market leaders.

Application Requirements and Schedule Announced

Market makers wishing to participate must have produced at least $20 million in trading volume in the last 30 days. Applications open on June 9 via Binance’s portal. A two-stage evaluation will examine liquidity strategy, automation infrastructure, and past performance reports, with responses planned within seven business days.

Eligible participants will start contributing volume on altcoin pairs from June 17, and rebates will automatically appear on end-of-month invoices. Real-time share tracking will be available on the screen, and system alerts will notify participants falling below thresholds. This initiative allows Binance to deepen liquidity cost-effectively while enabling small traders to capture market share.