Binance Launches First Altcoin-Focused Liquidity Program for Spot Markets

• Binance will focus on 18 altcoins via its new liquidity program to reward participants.
• XRP and BNB demonstrate bullish performance amid the ongoing market downtrend.

Global crypto exchange Binance has unveiled a new spot Liquidity Program to meet demand for deeper liquidity. The new initiative, dubbed “Altcoin LiquidityBoost Program,” is the first altcoin-focused liquidity program for those seeking to concentrate on alternative coins market-making.

Binance: Bridging the Altcoin Liquidity Gap

As revealed in a press release shared with CNF, Binance aims to bridge the gap for altcoin liquidity. Liquidity providers play an important role in ensuring market liquidity and stability. They are responsible for posting buy and sell orders on an ongoing basis. Through their assistance, users can execute their trades faster, more frequently, and with less slippage.

Despite their relevance, Liquidity Programs across major exchanges are currently limited. These programs require liquidity providers to market-make across all pairs on the exchange. In this case, the volume weightage skews towards Bitcoin and other large-cap tokens. 

Another major challenge is that the current Liquidity Programs are focused on crypto-fiat trading pairs. This makes it difficult for smaller/mid-sized liquidity providers to compete effectively against larger players.

Recognizing these limitations, Binance has focused its new liquidity program on specific altcoins. At its launch, the Altcoin LiquidityBoost Program will support 18 altcoins. Periodically, Binance will review the eligible altcoins to respond to market demand. 

To attract more liquidity providers to the program, Binance discloses intentions to provide incentives through competitive fee structures and rebates. A qualified liquidity provider can enjoy up to 1 bps in rebates if they meet the volume requirements for the altcoins.

Notably, existing spot maker programs’ rebates on major exchanges do not exceed 0.8 bps. They also require participants to provide liquidity for the exchange’s full range of spot trading pairs. 

To qualify for the new Binance Liquidity program, participants must submit quality liquidity-providing strategies. Submitted strategies must have a 30-day trading volume that exceeds 20,000,000 USDT equivalent on Binance Spot and Margin or other platforms.

Notably, the Altcoin LiquidityBoost Program complements Binance’s existing liquidity programs, enhancing its competitive spread. Interested participants can submit their application on June 10, 2025, while the maker fee rebates will commence on June 18.

Reaction from Top Altcoins

The broader crypto market is currently facing a downtrend, with the price of Bitcoin (BTC) falling to $104,000. Notwithstanding, the update on the new Binance liquidity has stirred optimism for altcoins like XRP and Binance Coin (BNB). These cryptocurrencies have increased prices by 0.9% and 0.6% within 24 hours.

As the LiquidityBoost Program continues to gain the market’s attention, the prices of other top altcoins are expected to rise. Surprisingly, the news comes just days after Binance reported massive altcoin outflows, as noted in our earlier post. Many analysts and market watchers quickly speculated about the emergence of a new altcoin season.

In related news, over $1 billion in stablecoins recently exited Binance. In a previous article, we discussed that this move signaled reduced liquidity and trader caution across the Bitcoin market.