2020 is drawing to a close, and crypto assets are about to draw a successful conclusion to one of the most glorious years. After two years of stagnation, crypto assets are once again in the spotlight as market valuations soar to their highest levels in recent years.
This year has been a choppy one for crypto assets. The recession triggered by the epidemic has brought considerable volatility to both traditional and encrypted assets, providing ample trading opportunities for global traders.
While economic conditions remain challenging, crypto assets such as Bitcoin and Ethereum have proven resilient as retail and institutional investors have poured in.
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Message from AG
Steve Jobs once said: You cant connect these life priorities in advance, you only know them in retrospect. So you have to trust that these pieces will come in handy in your future life.
The new decade has brought us a whole new world of uncertainty and the unknown. The COVID-19 pandemic has had an impact on the whole world, and the crypto asset industry has not been spared. Black Thursday, March 12 was one of the darkest days for the crypto asset industry. We did not give up, but persevered and constantly improved ourselves.
Today, we are about to enjoy the fruits of our labor. The success of Binance Futures is attributable to our continuous efforts to introduce innovative products that enhance the user experience while ensuring seamless and stable performance that users can rely on.
Through these efforts, Binance Futures has achieved great success this year. We’re proud to share with you some of the key milestones in this retrospective that we’ve achieved together with the community to help us become #1 in the industry:
24 new USDT margin contracts were launched in Q1, up from just 3 in early 2020.
Introducing Hybrid Margin, an innovative feature that allows users to collateralize their crypto assets to borrow against another crypto asset.
The launch of Binance Options simplifies options trading for retail investors. Using the built-in leverage feature, users can maximize profits while minimizing downside risk.
Introducing Binance Leveraged Tokens (BLVT), an innovative product that allows users to increase their exposure to specific crypto assets without worrying about liquidation risk.
Launched the currency-based quarterly delivery contract, which is our second flagship product, allowing users to use native encrypted assets instead of USDT for contract transactions and financing.
Launched coin-based perpetual contracts—users can trade contracts with no expiration date.
Launched the DeFi Composite Index, Binance’s first composite index product, allowing users to track and participate in the fast-growing DeFi market.
Launched Leaderboards, which combines social networking and crypto asset trading into one, allowing users to view and track the holdings of the top performing traders on the platform.
Introducing Versus, a novel crypto-asset trading where traders face-to-face to see who makes the most money in a given period of time.
On December 20, the open interest exceeded 2.7 billion US dollars.
On December 18, 24-hour trading volume hit an all-time high of more than $36 billion.
In 2020, the transaction volume processed exceeded 1.7 trillion US dollars.
Binance Futures currently offers a total of 162 derivative products:
80 kinds of USDT margin contracts
40 currency standard contracts
36 Binance Leveraged Tokens
4 Binance Options
As of the time of writing, the Bitcoin price is firmly locked above $20,000 and is approaching the $25,000 mark. 24-hour trading volume on Binance Futures hit an all-time high of more than $36 billion, cementing our position as the world’s largest crypto derivatives trading platform.
Bitcoin is headed into uncharted territory in 2021, and so is Binance Futures. Difficulties may come again, but as long as we continue to work hard with confidence, I believe the industry will be able to survive any crisis. We will continue to focus on the core values of user-centered design and innovative products, while continuing to communicate with users, the community and the industry.
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AG
Cryptoassets - Contract Outlook and Growth Overview
Like the traditional financial market, the derivatives market is an important part of the entire crypto asset ecosystem, providing the necessary hedging and liquidity solutions for the fast-growing market.
The launch of encrypted asset contracts and options products has accelerated the trading of these products. Year-to-date, its trading volume has exceeded US$8 trillion, and the trading volume in the first half of 2020 alone has exceeded US$4 trillion. This trend could intensify if the current bull market can continue into 2021.
Thanks to the trillions of dollars in financial liquidity injected by central banks around the world to avoid a recession triggered by the epidemic, crypto assets recovered quickly from the Black Thursday market crash in the first quarter. Trading volumes on major crypto-asset trading platforms have surged as markets quickly recovered and investors embraced the role of inflation-hedging assets such as gold and bitcoin.
Bitcoin’s third halving event in May was originally expected to be a catalyst for a bull market. However, subsequent developments proved that this was not a big event, as Bitcoin transactions later stalled, resulting in an overall decline in derivatives trading volumes in the first half of 2020.
In July, non-Bitcoin coins dominated media headlines as DeFi was developed. Many exchanges, including Binance Futures, quickly provided hedging solutions for DeFi tokens through contract trading, which contributed significantly to the increase in trading volume in August. As the DeFi hype faded, Bitcoin surged again and broke the $10K mark, paving the way for the rally we saw today.
Trading activity across all major trading platforms hit record highs in November, with trading volumes doubling from the previous month. Crypto assets continued to rise for the month, driven by increased demand from institutional investors.
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Growth of Binance Futures in 2020
In the year since its inception, Binance Futures is now the largest derivatives exchange in terms of trading volume and open interest.
Users are increasingly aware of the reliability and stability of our infrastructure, especially during extreme market conditions like Black Thursday. As a result, our market share continues to grow month by month.
With the launch of its second flagship product, coin-based contracts, in the second half of 2020, Binance Futures users can enter a complete derivatives trading ecosystem where they can choose to trade contracts with USDT or crypto assets. Additionally, we continue to expand our existing product line with new non-Bitcoin contracts. Binance’s wide variety of non-Bitcoin contracts provides users with more trading opportunities during the non-Bitcoin bull market.
By August, Binance Futures surpassed OKex in monthly trading volume due to our dominance in non-Bitcoin contracts. In the following September, we managed to take the No. 1 position with over $176 billion in transaction volume, and we continued to hold the leading position in October. Since the third quarter, the market share of Binance Futures has remained in the range of 32%-35%.
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While we cannot accurately predict whether the current bull market will continue into 2021, we can confidently say that the positive developments made this year by the entire crypto-asset economy will not disappear anytime soon. Large institutional investors are beginning to notice the value of digital assets. They will continue to invest and take our industry to new heights.
While we cannot accurately predict whether the current bull market will continue into 2021, we can confidently say that the positive developments made this year by the entire crypto-asset economy will not disappear anytime soon. Large institutional investors are beginning to notice the value of digital assets. They will continue to invest and take our industry to new heights.
This year, the crypto-asset revolution is gaining momentum as crypto-assets become increasingly mainstream. The post-pandemic world will usher in a new digital economy that spans many industries, and this economic form may gain support, thereby increasing the penetration rate of crypto assets.
