BitMEX Crypto Exchange Posts $1 Trillion In Annual Trading Volume
BitMEX Crypto Exchange Records $1 Trillion In Annual Trading Volume
There are several cryptocurrency exchanges in the market. Binance and Coinbase Pro are perhaps the most popular. In general, they are always launching new services, partnerships and listing new coins.
But BitMEX has been growing in the space as the crypto exchange for users to speculate in the price of the most popular digital currency. Indeed, this platform offers sophisticated financial products such as futures and margin trading.
According to a recent blog post released by the company, they informed that their notional annual trading volume is close to $1 trilllion. However, this is the notional value that the exchange handles, including leverage used on BitMEX. The average leverage at the platform is 8.6x.
The average trader and investor on BitMEX are currently buying and selling Bitcoin using 8.6 times more money than other exchanges. Taking away the 8.6x average leverage per trader, the exchange would handle $116 billion in annual trading volume. This is lower than the estimated annual trading volume of Binance close to $198 billion.
At the moment, the BitMEX Insurance fund has 21,000 Bitcoin (BTC), around $70 million at current values. That means that the exchange has 0.007% of BitMEX’s notional annual trading volume.
The data released by the company shows hat BitMEX is one of the largest Bitcoin users around the world. Thus, one of the most significant use cases for Bitcoin is to settle bets between Bitcoin traders. The company is very clear regarding the role that it plays in the market as a speculative trading platform.
This exchange is also increasing Bitcoin volumes to new levels. That could help the market enter a new bull market in the future as soon as this bear market finds an end.
BitMEX wrote about their insurance fund:
“Although 21,000 Bitcoin inside an insurance fund, worth around 0.1% of the total Bitcoin supply may seem large, BitMEX cannot offer the same robust guarantees to winning traders, compared to those provided by traditional leveraged trading platforms.”
In the future, BitMEX may start to increase its insurance fund to provide better services for users.