The Binance Futures service was launched in September 2019, and on September 9th, 2020 it turned one year old.
To celebrate the anniversary, Binance has published a long post on its blog in which it describes the results achieved in this first year.
Although 2020 was a “devastating” year, due to the COVID-19 pandemic that exacerbated the global economic crisis, the derivatives market actually benefited from this change, with volumes exceeding $4 trillion in the first half of the year, coupled with significantly improved open interest and liquidity in the crypto markets.
In this scenario, Binance Futures thrived.
Binance Futures’ 2020
On the first day of trading, September 9th, 2019, total trading volume on the new platform was $170 million, and in less than 12 months TokenInsight ranked Binance Futures as one of the three largest crypto derivatives exchanges, with quarterly volumes exceeding $200 billion, and $900 billion since the beginning of the year.
In July, on the day the price of BTC exceeded $10,000, Binance Futures set a record high with $12.7 billion traded in a single day. In addition, in August it recorded the highest monthly volume, with $195 billion, also due to the rise of DeFi.
Overall, open interest has grown almost tenfold since the beginning of the year, from 137 million USDT to over 1 billion USDT in August.
Of this, 540 million is attributable to Bitcoin futures contracts alone.
In this regard, Binance says:
“Today, we lead the market with the most extensive range of products, backed by a Nasdaq-level matching engine with all types of trading orders and tools”.
In fact, since the beginning of 2020 volumes have increased significantly throughout the industry, so much so that, for example, the volume in the first quarter alone is greater than the sum of volumes in the two previous quarters. Moreover, the growth in these volumes has coincided with greater volatility, suggesting that it is the latter that drives them.
The platform’s development strategy is based on three pillars:
- solid foundations,
- a product-focused approach,
The Binance Futures engine can process over 100,000 orders per second, the various products have been released one at a time, and now there are as many as 85 in four categories.
The cryptocurrency derivatives sector is still pale in comparison to the size of traditional markets, however, the crypto sector is innovating more than the traditional market. The development of this sector, according to Binance, shows that many other traditional financial instruments can be replicated within the new ecosystem.