Posted 12 months ago | by Ben Armstrong

BitMEX Is Losing Market Share to Binance Futures

One of the world’s biggest crypto derivatives exchanges, BitMEX, has reportedly lost market share to Binance after the crunch that happened earlier this year. The world’s third-largest crypto exchange is attempting to recover from a major market sell-off, which followed the Black Thursday crash in March.

Crypto analytics firm Coin Metrics reported on April 21 that BitMEX has continued losing in both open interest and volume for Bitcoin (BTC) futures since last month’s historic market crash.

According to the report, Binance’s Bitcoin futures trading arm, Binance Futures, meanwhile, has been increasingly gaining momentum. This data comes from Coin Metrics’ 47th “State of the Network” report, which is found out to understand the impact of the Black Thursday on crypto markets.

Binance is on the Rise

Coin Metrics said that Binance Futures now tops the BTC futures markets by trading volume, which suggests that Binance could grow its share of the market further in the coming months. If you are interested in trading futures with Binance, just click right here to sign up for an account!

Data from Skew on April 21 confirmed this trend and Binance is reportedly hitting $2.8 billion in 24-hour Bitcoin futures volumes, while BitMEX and Huobi are both below this level.

Coin Metrics data showed that BitMEX’s share of open interest dropped from above 35% in mid-March to nearly 25% in mid-April. BitMEX’s share of market volume tumbled from about 25% to below 20% at the same time.

Shifting Trends in the BTC Futures Market

The metrics out of BitMEX continued to see declines in April though there was a small recovery around March 30 for both open interest and volume.

According to Coin Metrics, Binance recorded the biggest surge on its futures platform after the Black Thursday crash. Binance Futures’ open interest share of the market jumped from about 10% in mid-March to nearly 25% by April 12, while open interest share gained 5% over the period, Coin Metrics’ data shows.

BitMEX saw a massive drop in Bitcoin deposits after the Black Thursday crash on March 12. The exchange saw nearly a 40% drop in Bitcoin holdings on its platform from March 13 to April 9.

While it is impossible to see where these trends will go in the medium-term, it is clear that Binance is pulling market share from other exchanges at the moment. Bitcoin futures can be very profitable, but they are also a great way to hedge part of a portfolio against a wild market. These tools will likely gain in popularity as crypto use becomes more widespread.