Cryptocurrency News, Cryptocurrency Price Analysis

Binance’s Futures Trading Platform Sees A Record Monthly Trading Volume Of $2T

April 2021 turned out to be a great month for the crypto space as there were diverse record-breaking experiences for several cryptocurrencies. Binance, the leading digital asset exchange globally, revealed that it records the highest volume for futures trading over 2 trillion USD.

Binance Futures Trading Volume Above $2 Trillion

The digital asset exchange giant based in Malta published the monthly report for April yesterday, where it was highlighted that the numbers recorded for the futures trading volumes on the platform are record-breaking.

The statement noted that Binance Futures facilitated a $2.14 trillion trading volume which is about a 54% increase compared to the previous month – March. In addition, the exchange also records a 24-hour record of processed contracts worth $121 billion.

All these came despite the crypto dips that saw bitcoin dropped below $50,000, and the entire crypto market lost about $300 billion market cap in just 24 hours on the 23rd of April.

Though, before the huge crash, Bitcoin had risen to $65,000 earlier in April, which made Binance record open interest of about $13 billion.

However, the following price retracement of bitcoin has seen traders close their BTC-related long positions because of liquidation losses. As a result, the open interest had fallen below $10 billion at the close of the month.

A Binance Representative linked the growth of the Binance futures to different factors. One of these factors is the general performance of the cryptocurrency market, especially with the appearance of giant institutional adopters on the scene.

He said: “Since the year began, we have seen a tremendous increase in the activities of both existing and new users at Binance futures. The current rise in the market will cause a huge rise in the demand for liquidity and hedging tools like options and futures, and we are prepared to serve our customers.”

Bitcoin Outdone Ether in April

The report published by Binance covers the performance of the famous digital assets in the crypto market as well. As mentioned earlier, BTC hit a new all-time high but crashed sharply and closed the month in a loss though minor compared to the March close.

At the same time, the Binance report described the performance of ETH in April as “phenomenal,” which makes the second-ranked digital asset by market cap record a 44% increase and altogether 300% from the beginning of the year to the end of April.

Binance also believes that most investors have long positions opened on Ethereum as there is an upcoming upgrade that will address the high gas fees.

Leave a Reply

Your email address will not be published.