Cryptocurrency derivatives remain an interesting market, but it appears that overall growth is slowing down. The demise of BitMex and a ban in the UK are making their mark. Even so. Binance has become the largest derivatives platform for September 2020.
Binance Dominates the Landscape
Most people know that Binance is the biggest cryptocurrency exchange in the world today.
It has the most users, and notes strong trading volume for all supporter markets.
In the UK, derivatives trading for Bitcoin and altcoins will come to an end in a few months.
That verdict was handed down by the FCA earlier in the week, and will not be revised.
There is also the BitMex situation, which doesn’t bode well for the industry as a whole.
Cryptocurrency derivatives are seemingly facing a lot of regulatory pressure, which may lead to more platforms discontinuing these services.
According to new statistics by CryptoCompare, there are some significant changes in the derivatives market as of late.
All platforms, except for FTX, have noted a negative change in volume.
That in itself confirms most speculators are not too interested in these investment vehicles as of right now.
Despite the growth, FTX has only barely overtaken Deribit in overall trading volume.
It remains well behind Bybit and BitMEX, although that may not be the case much longer.
OKEx and Huobi are neck-in-neck for derivative volume in September, which is remarkable, given their earlier growth.
Binance, despite a net 10.7% loss in volume, remains the top platform for the time being.
With more platforms potentially launching derivatives, things should get more interesting in the future.
For Binance, it will be interesting to see if either Huobi or OKEx can dethrone it for the second time in quick succession.
Decentralized derivative platforms have yet to make a meaningful impact on the industry.