The market-wide volatility has also put a notable strain on the derivatives market. Binance, for one, has managed to lead the space.
Coinglass data shows that Binance accounts for the majority of the derivatives share. The volume of crypto contracts from January 2021 to the present stood at $33.5 trillion.
- According to the data from the analytics resource, the crypto exchange has gained more than 50% market share due to “good market depth and a diverse selection of altcoins.”
- Trailing behind is OKX with $10.2 trillion, which witnessed its growth trajectory cut short due to stiff competition from Binance. OKX also reportedly failed to perform well in the international markets.
- Next up was Huobi Global with $7.63 trillion, and FTX with $5.59 trillion. Huobi has seen a major drop in trading volume after withdrawing from the Chinese mainland market. Currently, its daily trading volume stands at approximately $2 billion.
- FTX, on the other hand, is yet to strengthen its altcoin diversification and market depth but managed to achieve impressive growth during the 2021 bull run.
- The former market leader BitMEX has slid down significantly with a contract turnover of $1.57 trillion during the same timeframe. Coinglass cited the platform’s poor product experience for the slump. Data suggests that Bitmex has changed from being the first in the market to a trading venue with only $1 billion per day.
- Deribit and Kraken stood at $689.5 billion and $221.4 billion, respectively.
- The expansion of the derivatives market, especially in the US, has been slow but steady with only a handful of options.
- Coinbase Derivatives Exchange, formerly known as FairX, recently announced rolling out its first crypto derivatives product this month. The focus is to attract more retail traders.
- The appeal of crypto derivatives can be attributed to the fact that market players are not required to hold the physical asset. This helps them to navigate wallets and other complicated market infrastructure.
- For most participants, a regulated counterparty is always a safer bet to get access to a volatile asset class such as cryptocurrencies.