Recent analysis indicates that Binance, the leading centralized exchange, has significantly increased its futures trading volumes, reaching record levels this year.
Significant Dominance
Data analytics firm CryptoQuant reported that Binance leads in futures trading volume, which reached $2.55 trillion last month. This is the highest level for 2023, attributed to recent volatility and price increases in Bitcoin and altcoins. Exchanges OKX and Bybit reported volumes of $929 billion and $1.09 trillion, respectively, but notably lag behind Binance.
Other Metrics
Despite the large futures trading volume, other key metrics indicate a decrease in user activity. A report from CryptoPotato highlights that a recent Bitcoin sell-off resulted in $1.5 billion in liquidations. Negative funding rates suggest more shorts than longs, indicating more traders betting on prices to fall. Active monthly addresses on Binance dropped from 800,000 at the start of June to around 340,000 at the beginning of August, representing a 57.5% decrease.
Overall Market Situation
The situation in the cryptocurrency market remains mixed. The overall crypto market capitalization fell from $4 trillion in July to $3.7 trillion. Current market sentiment is characterized as "neutral," featuring a combination of ups and downs in cryptocurrency prices.
In conclusion, while Binance’s futures trading volumes hit record highs, declining metrics indicate a drop in user engagement, possibly reflecting a current 'risk-off' sentiment in the market.
