Binance has recorded an increase in open interest to a record high of more than $10 billion. The rise amounts to a 3900% annual growth on the platform.
Binance, which is a platform for trading crypto derivatives continued to rise in popularity with an increase in the number of customers on the platform caused by the bullish market trend. The open interest at Binance has risen to an all-time high of $10 billion. This depicts an annual growth of almost 3900%.
The rise in open interest on the platform is equivalent to the value of derivatives contracts traded but have not yet been settled using offsetting techniques. This rise also shows that there is a spike in money influx in the market.
Binance offers a retail-trading platform that cannot be found on other exchange platforms such as Coinbase. The reason why Binance is experiencing a rise in the number of users who are joining the platform is its heightened rate of participation in the retail market.
The expansion of Binance Futures
Binance futures is the biggest bitcoin futures exchange in terms of open interest. The platform is responsible for having a contribution of $4.33 billion, which is equivalent to the worldwide percentage of 18.44%. This data shows that Binance’s retail model is doing well and with the bull crypto market, their revenues are still going to be on an upward trend.
Binance Futures was started in September 2019, and this was via a single tether (USDT, +0.21%).this was margined against the perpetual futures for Bitcoin (-2.83%). Since its launch, this derivatives platform has been performing incredibly well and it has recorded an impressive expansion. Binance now has more product suites with more than 180 pairs of margined futures contracts, 36 Binance leveraged tokens and six options.
The expansion of Binance futures and other derivative instruments comes at a time when many digital asset firms are recording spikes in trading volumes and revenues. This is because of an increased demand in digital assets after the assets were endorsed by key industry players such as Elon Musk. If the demand increases, this only means that Binance’s open interest numbers will continue to rise and this will have a positive impact on the platform’s business.
Binance is a derivatives platform that primarily deals with crypto assets. It has a unique retail model that makes it attractive to many investors. This has contributed to the record open interest of $10 billion.