USDT-Margined Perpetual Contracts Take 91.97% as Binance Futures Hits $5.90trn in Q2
Binance Futures, the world's largest crypto derivatives exchange, surpassed $5.90 trillion in total trading volume in perpetual futures contracts in the second quarter of 2022.Tether-margined (USDT-M) perpetual contracts...
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Tether-margined (USDT-M) perpetual contracts accounted for 91.97% of this trading volume in the said period, the exchange said.
Binance disclosed these in its Binance Futures Quarterly Report: Q2 2022 published on Friday.
Performance of the Crypto Trading Pairs
According to Binance, the average daily volume (ADV) of USDT-M perpetual contracts stood at $43.52 billion.
However, USDT-M perpetual contracts traded on the futures market of the exchange surged to as high as $121.41 billion on May 11th.
In the second quarter of this year, trading pair BTC/USDT was the most-traded perpetual contracts on Binance Futures while 1000 BitTorrent Chain token (BTTC)/USDT was the least traded, the quarterly report says.
While BTC/USDT returned $1.28 trillion in trading volumes, 1000 BTTC/USDT turned over $87.91 million.
“The second one was the ETH/USDT contract with $549.75 billion in trading volume, followed by GMT/USDT with an aggregated quarterly trading volume of $232.28 billion,” Binance said.
Trading pairs DFI.Money (YFII), an Ethereum token, and USDT came in as the second least traded pair of perpetual contracts with $154.62 million in trading volumes.
How Did BUSD-M Perpetual Contracts Perform?Binance said margined perpetual contracts based on its stablecoin Binance USD (BUSD) “saw a substantial uptick in interest.”
The exchange said BUSD-M perpetual contracts ADV came in at $3.80 billion.
The ADV started with $2.58 billion on April 1, it closed at an impressive $6.62 billion on June 30.
“The addition of 17 new BUSD-M pairs appears to have significantly contributed to the spike in trading volume as BUSD became the third-largest stablecoin in the cryptocurrency market,” Binance explained.
However, Binance Futures saw a 54.70% plunge in open interest during the period.
The exchange said it opened with $11.68 billion in open interest at the beginning of the quarter but closed with $5.29 billion.
This sharp decline “correlates with the market dynamics seen during the period,” the largest crypto derivatives exchange said.
Open interest is the total number of futures contracts that are active or have not been settled by market participants.
Furthermore, Binance explained that most traders kept an optimistic approach to trading cryptocurrencies in the meme, infrastructure and metaverse market categories.
Binance explained, “The combined 1000SHIB/USDT and DOGEUSDT long/short ratio was as high as 3.75.
“The overall long/short ratio for the infrastructure sector, which includes ANKR/USDT, TK/USDT, CVC/USDT, DENT/USDT, GAL/USDT, GTC/USDT, HNT/USDT, JASMY/USDT, LPT/USDT and NKN/USDT, was 3.50.
“Meanwhile, trading pairs in the Metaverse sector, such as ALICE/USDT, AXS/USDT, GALA/USDT, GMT/USDT, MANA/USDT, SAND/USDT and TLM/USDT, maintained an average long/short ratio of 3.26.”
This article was written by Solomon Oladipupo at www.financemagnates.com.Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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