BitMEX Loses its Dominant Position; Competition Among Binance, ByBit, & Others Heating Up

The money from BitMEX is finding its way to other exchanges like OKEx and CME.

Since starting the month, the price of bitcoin has weathered numerous storms.

From KuCoin’s $281 million hack, US President Donald Trump testing coronavirus positive, UK’s FCA banning crypto derivatives to FATF red-flagging hardware wallets, Europol prioritizing privacy wallets, and of course, BitMEX’ indictment, BTC held through it all.

The leading digital currency kept to $10,000 strongly, and went as high as $11,500 last week, recording a 5.24% increase.

However, the same couldn’t be said of the popular crypto derivatives platform BitMEX which saw its BTC balance decreasing by 30%.

As a matter of fact, BTC futures annualized rolling 3-month basis actually went negative on BitMEX while on FTX, it was +6.52%, +6.30% on Binance, and +5.65% on Deribit.

Although still having a 6% difference to other exchanges, it is now gradually moving upwards to 4%.

Bitcoin futures on the platform are also trading at a discount at $11,460 compared to $11,527 on Kraken, $11,582 on Deribit, $11,594 on FTX, and OKEx, and above $11,600 on both Huobi and Binance for the month of December.

Stealing BitMEX”s Share

Meanwhile, open interest on the exchange went down hard to 35k BTC on the weekend, from the high of 55k BTC, $615 million right before the crash in direct response to criminal charges brought on by the CFTC and DOJ.

OI on BitMEX does not show any signs of slowing down its decline, although currently, it sits at 36k BTC, about $413 million.

Meanwhile, other platforms are capturing this as this month; the total OI increased by 16.6%.

While percentage-wise, FTX saw the biggest jump of 51.2% ($85 million), OKEx was the one that recorded the largest spike in absolute terms at $110 million (13.5%), as per Skew.

Besides BitMEX every platform experienced a rise in their open interest: CME 43.4% ($150 million), Deribit 35% ($60 million), Kraken 26% ($11 million), Bakkt 23% ($3 million), Binance 22.3% ($93 million), Bybit 19.6% ($76 million), Huobi 8% ($41 million), and Bitfinex 4.8% ($3 million).

Binance has actually taken the leader position in the space in terms of open interest with Bybit close behind, surpassing the OI on BitMEX. Vetle Lunde, an analyst at Arcane Research, noted,

“BitMEX has lost its dominant position while the competition in the derivative markets has been sharpened as more exchanges have gained traction.”

Open Interest Distribution
Source: Arcane Research

Traders left BitMEX but didn’t leave the market; they have moved on to other exchanges to trade perpetual BTC contracts.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,272FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today