Over the past few years, the volume of derivatives traded on Binance has been increasingly forked towards U.S hours. However, recent data indicated a drop in trading volumes during US hours since the Commodity Futures Trading Commission (CFTC) lawsuit against the exchange.
Kaiko, a top crypto data source, sheds light on the considerable decline in Binance’s derivatives trading volume during U.S hours:
Derivatives volume on Binance is increasingly skewed towards U.S hours over the past few years.— Kaiko (@KaikoData) April 13, 2023
However, not charted, we noticed a drop in volumes during U.S hours since the CFTC lawsuit 🧐 pic.twitter.com/UOS9oWBI42
Notably, the decline in Binance’s derivatives trading volume during US hours is a significant development since it has been increasingly crooked towards these hours over the past few years. This trend was mainly due to the growing number of institutional investors in the United States who are interested in trading cryptocurrency derivatives.
It is noteworthy that Binance’s derivatives trading volume usually increases during US hours; the decline seen in recent weeks is an indication that investors are cautious about trading on the platform following the CFTC lawsuit. The lawsuit alleges that Binance had been offering derivatives trading services to US customers illegally and had not registered with the CFTC.
Significantly, Binance has been facing regulatory scrutiny from various jurisdictions, including the UK, Japan, and Canada. The company has been taking measures to comply with regulations, such as restricting access to certain services in some jurisdictions and acquiring licenses where necessary.
Although it’s uncertain whether the trend towards US hours trading on Binance will continue, the recent drop in trading volumes during this time might be a sign of changing attitudes towards the exchange among US investors.