The recent heated clash between Binance‘s Chief, Changpeng Zhao (CZ) and FTX CEO, Sam Bankman-Fried (SBF) has led to increased volatility in the digital asset market. However, both crypto exchange chief has clarified their take on the prior announcement made by them.
Binance spot vol on a surge
Vetle Lunde, Senior Analyst at Arcane Research reported that Binance is really pushing to secure its dominance. She mentioned that Binance’s spot volume dominance has spiked sharply.
Its volume dominance has jumped from 0-60% to 80-90% of the market after the fee removal declaration. She added that Binance accounts for 40% of perp open interest (Ethereum + Bitcoin).
According to Glassnode Alerts, Bitcoin’s mean liquidated volume in futures contracts’ long position went on to reach a 1 month high of $118,970.98 on the CZ’s Binance. It mentioned that last 1 month’s high of $104,869.88 was observed on 22 October 2022
However, it also reported that Bitcoin’s open interest in perpetual futures contracts was recorded at a 16-month low of $711,533,975.75 on the FTX exchange. Meanwhile, the last 16-month low of $723,290,897.69 was registered on 08 July 2021.
FTT insolvency unlikely
Vetle Lunde reported that FTX OI dom has fallen by a big margin. It has fallen from 25% to 14% from 2nd to 4th.
She highlighted that this might be FTX’s BitMEX moment. However, the Mex wasn’t able to recover after two reputational hits in 2020.
Senior Analyst suggested that FTX from here will face a hard time in rebuilding its reputation. However, the insolvency of the firm might not be on the cards. Meanwhile, this impact will be leaving a long lasting impact on FTX’s relevance.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/binance-spot-vol-dominance-on-peak-amid-clash-with-ftx/