Coinmatrics: Bitmix’s position in the cryptocurrency derivatives market continues to deteriorate

After the markets fell in mid-March, the BitMEX cryptocurrency derivatives exchange continues to lose its share in trading bitcoin futures to Binance and other platforms.

According to the Coinmetrics report, BitMEX cannot recover from the collapse of the markets and continues to lose its market share both in terms of the number of open positions and the volume of trading in bitcoin futures. At the same time, Binance Futures – a division of the Binance exchange engaged in trading cryptocurrency derivatives – is increasingly gaining momentum.

Binance Futures has become the largest platform of the futures market after prices fell last month, and this is also confirmed by data provided by the analytical company Skew. As of April 21, the daily volume of bitcoin futures trading on Binance was $2.8 billion, compared to $2.1 billion on BitMEX and $2.46 billion on Huobi.

According to Coinmetrics, BitMEX’s share in the futures market for the total amount of unrealized contracts fell from 35% in mid-March to 25% in mid-April. BitMEX’s market share in terms of futures trading volume fell from 25% to 20% over the same period. Despite a small attempt to restore both indicators by March 30, volumes continued to decline in April.

At the same time, Binance, on the contrary, showed an increase in similar indicators from the second half of March. Thus, the market share of the platform for open positions increased from 10% in mid-March to almost 25% by April 12, and the share in the volume of futures trading increased by 5%.

At the beginning of the month, analysts said that the volume of trading derivatives for bitcoin on BitMEX significantly decreased after the fall of the cryptocurrency market on March 12-13 – a significant drawdown was recorded on March 14. At the same time, the decline in volumes at other sites was not as strong.

In early April, it was also reported that the number of BTC on BitMEX wallets decreased by a quarter, while the outflow of coins from the wallets of this particular platform was the strongest. In addition, shortly before this, the amount of open positions on BitMEX reached its lowest in 18 months.