- Binance Future now the dominant player in Bitcoin futures market
- Decline of BitMEX played a role in its ascension
Data from Skew has shown that Binance Futures has the highest perpetual Bitcoin swap contract. This means that it has eclipsed BitMEX which had issues with the US authorities early October this year.
Binance had launched Binance Future as its Futures exchange arm. The launch was done in September 2019.
The Futures exchange arm of Binance has since grown to rival OKEx and CME Bitcoin futures as one of the largest Futures exchanges that are currently in existence.
Presently, Binance Futures currently processes more cumulative volume than Huobi and Okex. According to data released by Skew, Binance Future processes over $6 billion daily.
When a more cursory look is taken at this figure, the progress the Binance Futures exchange has made becomes more apparent.
For instance, the exchange has only been in existence for just over a year but its growth has been massive and has had a positive impact on its mother company.
Another notable factor is that the exchange has enabled the accessibility of different crypto assets into its system. This means the exchange processes crypto assets different from Bitcoin. Invariably this has played a role in making its daily total cumulative volume exceed that of its Bitcoin futures volume.
Binance Futures aided by BitMEX probe
One of the reasons that Binance Future has begun to dominate the Bitcoin Futures market is the probe of BitMEX by financial regulators in the United States.
Arthur Hayes -CEO of BitMEX- had highlighted how the exchange had a $10 billion volume within a day’s trade.
However, the daily volume of BitMEX began to suffer when the Department of Justice (DOJ) accused the exchange of breaking the Bank Secrecy Act resulting in the charge of the exchange top officers