2019 marks the transformation of the derivatives market. Many industry experts believe that the field will soon become more popular with traders and institutional investors continuing to jump into the group.
Large players like BitMEX dominate the derivative space for a long time. However, other exchanges like Binance have gained their positions over the past year.
Binance Research, Binance’s research department, has released its latest report, ‘December Markets Overview,’ showing that the Futures market has recorded consistent growth.
Bitcoin Futures volume surpassed the spot
The volume of BTC / USDT perpetual contracts is higher than the total spot volume on all pairs on Binance’s platform for most of the year.
Source: Binance Research, Binance.com.
The BTC / USDT perpetual contract markets represent an average daily volume of $ 923.1 million, while the spot market shows $ 285.6 million in daily volume.
The moment Bitcoin price broke the $ 7400 resistance and soared to $ 9600 in October 2019 witnessed a massive surge in both spot volume and futures on Binance.
The latest high of Futures was created when Bitcoin jumped from $ 6,600 thousand to $ 7,500 thousand on December 23.
Besides BTC Futures, Binance also launched ETH Futures in November 2019 with a maximum leverage of 75x. The volume of ETH Futures also noted a trend that outperformed the spot volume.
Source: Binance Research, Binance.com.
ETH / USDT perpetual contract markets show an average daily volume of $ 58.7 million, while the spot market represents a daily volume of $ 32.9 million.
Bitcoin reached trading dominance over 40% on Binance
Although the start of 2020 was not so positive, Bitcoin seems to have been firmly established in uptrend today. The BTC price has entered the $ 7500 area and is trading up nearly 2% at the time of writing.
Although an expected Santa Claus rally did not occur in December, Bitcoin’s trading dominance in the month on Binance reached 40.48%, according to Binance Research.
However, the figures have decreased by 1.28% compared to November (41.76%). Meanwhile, Bitcoin market dominance increased slightly from ~ 67% to ~ 68%.
Source: Binance Research, Binance.com.
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