Last Updated: 17 November 2022
Binance benefits from the collapse of rival FTX. The crypto exchange is gobbling up the trading volume of the futures market on FTX. Binance was already the market leader, but last week provided an additional boost.
Trading volume for futures on Binance is around $35 billion in the past 24 hours, according to CoinMarketCap. These are mostly ‘perpetual contracts’. These are not standard contracts, but as the name suggests, they are contracts that do not expire. You can keep your position open for as long as you want (or can afford).
It's looking like Binance has taken over all of FTX futures market share.
— CoinMetrics.io (@coinmetrics) November 15, 2022
The futures market is larger than the spot market. Trading volume on the spot market, at $13 billion in the past 24 hours at Binance, is a lot lower than the $35 billion mentioned earlier.
Many of the futures are based on a price index and are not paid out in BTC. So there is heavy speculation on the price, but there is often no real bitcoin involved.
Role of Binance
In case it escaped your notice: Binance played a role in the rapid demise of FTX. The latter sits with a deficit of billions of dollars. Binance opened the attack last week.
Binance announced it would start selling the tokens of. FTX was/is one of Binance’s competitors. The latter was involved in the first investment rounds in FTX. Meanwhile, the relative cooled down considerably and Binance seems to be on the winning side.
Binance chief executive Changpeng Zhao thought this was a logical move after they liquidated all their shares in the exchange last year.