CryptoPotato has reported on TradingView that Binance's futures trading volume has reached a new yearly high of $2.55 trillion last month, signaling strong dominance in the derivatives market. This surge, following a period of price volatility for Bitcoin and other altcoins, suggests increased user activity and a greater participation in riskier trading strategies. The report highlights that Binance's volume is more than double that of its closest competitors, OKX and Bybit, cementing its leading position.
However, the article also presents a conflicting picture with other metrics. While futures volume is up, other data points suggest a "risk-off" sentiment and dwindling user activity. For instance, funding rates have turned negative, indicating that more traders are betting on a price decrease. Additionally, the number of active monthly addresses on Binance has dropped significantly, from approximately 800,000 at the start of June to around 340,000 in early August.
This clash of positive and negative signals reflects the current "neutral" state of the crypto market. The overall market capitalization has also seen a decline, dropping to $3.7 trillion from its peak of $4 trillion in July. The report concludes that while the increase in futures volume points to renewed activity, the drop in other metrics suggests a mixed bag of ups and downs for the market.
