Binance Futures: 20% of customers prefer …

Binance Futures: 20% of customers prefer to trade at 100x leverage or higher

Binance cryptocurrency exchange has released a new report on the operation of the derivatives platform Binance Futures, launched in September. Binance Futures has become one of the largest exchanges of its kind, processing 300,000 BTC per day, and has reached $ 90 billion in trading volume since its inception, according to the company..

The growth in trading volumes on Binance Futures accelerated in October, when the ability to open positions on Bitcoin with leverage of up to 125x was added. Currently, the derivatives market accounts for about 75% of Binance’s trading volumes and only 25% of the spot market..

Image: Binance Futures

In early November, the volume of active positions on Binance Futures did not reach $ 50 million, and on December 17, the value exceeded the $ 100 million mark for the first time. Now it is approaching $ 150 million.

Image: Binance Futures

On average, over 80% of Binance Futures customers choose to use 20x leverage or higher; 20% of users trade at 100x leverage or higher. At the same time, high-risk trading is more often chosen by retail clients, while institutional investors, who account for 81% of the platform’s total trading volume, are more likely to use leverage of 20x or lower..

Image: Binance Futures

Binance Futures: 20% of customers prefer ...

Since the beginning of the second quarter, the entire crypto futures industry has grown by almost 600%. BitMEX traditionally dominated the total mass, however, over time, the shares of Huobi and OKEx also began to grow. Binance’s entry into this space has had a tangible impact on the distribution of power.

Image: Binance Futures

“Since 2019, the level of competition has increased across the entire crypto futures industry. Exchanges are racing to offer new products and features to attract users. Accordingly, the concentration of market share among the top 5 derivatives exchanges has decreased, and the space itself has become more orderly, ”writes Binance, noting that in the near future it also intends to add the possibility of providing collateral in the stablecoin BUSD.

Binance Futures: 20% of customers prefer ...

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