Bitfinex Derivatives Rolls Out New Perpetual Swaps to Speculate on BTC Dominance
Bitfinex’s derivatives platform has launched a new perpetual swap product for traders based on Bitcoin’s market dominance.
Bitcoin's dominance refers to the overall market cap share of the crypto market and is considered among one of the key metrics for cryptocurrencies. Bitcoin, being the king of cryptocurrencies, has the highest market dominance which currently stands at 68% at the time of press.
The Bitifinex derivatives platform claimed that its Bitcoin Dominance Perpetual Swap is the first of its kind, believing that it is much more of a capital-efficient than a traditional long and short futures trade.
The derivative platform also claimed that its newly introduced perpetual swap is also less volatile than other products.
The newly launched Bitcoin dominance perpetual swaps are bound to be less volatile, given Bitcoin’s market dominance has remained stable over the time of its existence. Its volatility is way less than its spot market price.
For example, Bitcoin’s dominance a year ago was 55% and has remained between 60-70% since June of 2019, except for the recent market crash on March 12th.
One of the representatives from the exchange explained the thought process behind the launch of such unique perpetual swaps saying:
“Bitcoin has proven time and time again to be a safe haven for traders and it is continuing to be seen as digital gold.
Since global markets crashed in March as the COVID-19 crisis took hold, we have seen a huge increase in trading volume, reaching over $2B over a 24-hour period during the crash on March 13th. We believe the demand will still be there after the halving whilst the supply will be halved.”
Bitfinex’s subsidiaries continue to thrive and launch new products, despite its parent company iFinex being in hot waters for lawsuits filed against it on charges of market manipulation at the start of the year.
Last month, Bitfinex launched its own social media platform for traders – called Bitfinex Pulse – to help traders communicate more efficiently. Along with that it also launched a staking service at the start of the last month.