28 February, 2024



Binance, Bybit Grab FTX’s BTC Perp Future Market Share

1 year ago

21 Feb, 2024

  • Binance grabs a 7% market share in FTX BTC Perps, saving crypto liquidity, per Kaiko.
  • SOL leads the worst-hit L1 tokens’ brigade whereas DEX tokens stay immune.
  • GBTC parent, Digital Currency Group, potentially heading towards insolvency.

The FTX collapse has placed the derivatives exchanges in a competing situation. As per Kaiko Data, Binance and Bybit have claimed the ~10% BTC (Bitcoin) Perpetual Future Market Share.

Binance is the clear winner as it has grabbed a 7% market share of BTC perpetual futures’ volumes. Since November, Binance’s BTC perpetual volumes’ market share has risen from 56% to 63%. 

Binance has claimed a huge part of the said volume that was once owned by FTX. By doing so, Binance leads the cryptocurrency liquidity brigade up to a reasonable extent.

The other derivatives exchange in the game is Bybit, with a 3% share in the total BTC perpetual volume. But there’s more. The dYdX decentralized derivatives exchange’s token rose 18%.

The two derivatives exchanges that couldn’t quite make it through are OKX and Deribit.

Following the FTX-Alameda dent on the Cryptoverse, the market depth has only now gotten better from $112 million to $150 million. This means that capital deployment in the exchanges has again begun via the market makers.

Market depth essentially signals the underlying demand and supply dynamics of Bitcoin.

The report from Kaiko also states that Genesis and Grayscale Bitcoin Trust’s (GBTC) parent company, Digital Currency Group (DCG), might potentially face liquidity problems.

How worrying would the FTX turmoil turn out to be for the cryptocurrency market operations is yet to be seen.

Kaiko Data also reveals that Layer 1 (L1) tokens have fallen 34% since November. Leading the post-FTX crypto world price fall brigade is Solana (SOL). Decentralized (DEX) tokens, though fallen 16%, are still better-off than BTC.

Notably, Binance’s weekly trade volumes also fell 60%. Binance has still managed to perform far better than most exchanges, regardless of a fiery bear market.

Owing to an active fee reduction by Binance, its weekly trading volumes have stayed above $80bn in the recent months.

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