Binance, one of the world’s largest cryptocurrency exchanges, has unveiled a significant update to its leverage and margin tiers for six key tokens. The update includes CATI, RARE, AXS, ZEN, XTZ, and SAGA, which is expected to impact trading dynamics amid ongoing market volatility.
The enhanced offerings, which came into effect on March 11 at 09:30 UTC, include updates to USD-margined perpetual contracts for these six tokens. Specifically, the leverage for CATIUSDT has been set to 5x for positions between 800,000 and 1,000,000, alongside a 10% maintenance margin rate. Traders are encouraged to adjust their positions ahead of the update as existing positions may be affected by the changes.
Impact on Prices Amid Market Volatility
Despite the boost in leverage and margin capabilities, the price reactions have been mixed. CATI has seen a slight dip of over 5%, trading at $0.1482, with intraday fluctuations between $0.1475 and $0.1592. In contrast, RARE token has surged by 37%, reaching $0.1265 from a low of $0.08828.
Meanwhile, AXS, XTZ, and SAGA experienced losses, with AXS dropping 8% to $2.97, XTZ falling 8% to $0.6657, and SAGA slipping 8% to $0.3394. These declines reflect the broader market struggles amid concerns about a potential U.S. recession, which has weighed heavily on risk assets like Bitcoin and Ethereum.
What’s Next for Traders?
As the crypto market continues to navigate through turbulent times, Binance’s move to update its leverage and margin tiers aims to provide traders with enhanced opportunities. However, the overall market sentiment remains cautious, and the impact of these updates on long-term price movements is still uncertain. Traders are advised to stay vigilant as market conditions evolve.
Despite the current downtrend, Binance’s update could bring short-term relief, especially for tokens like RARE, where the market is already seeing a positive reaction.
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