Chart 7 - Bitcoin’s open interest dominance in January (daily) Sources: Binance Futures, Binance Research. “Bitcoin Open Interest dominance is defined as the respective contribution from Bitcoin’s open interest relative to the total open interest on a derivatives platform (e.g., Binance Futures) over a defined period of time (e.g., daily)." With the expansion of new trading pairs, we decided to create a new indicator called Bitcoin’s Open Interest dominance. Chart 6 - Total open interest in perpetual markets in January (in USDT million) Chart 5 - Open interest on Bitcoin perpetual contract in January (in USDT million) Collectively, open interest across altcoin perpetual markets has grown from under USDT 20 million on January 1st to USDT 75 million: an expansion by more than 250% in a single month. BTCUSDT’s perpetual markets remained the most invested contract, dominating 75% of its total open interest. Since the start of the year, its open interest grew 98% from $137 to $271 million as of 31st January. Chart 4 - Daily volume traded on ETH/USDT and BCH/USDT perpetual markets (in USD million)īinance Futures saw its open interest reached the $200 million mark and has maintained it ever since. Chart 3 - Daily volume traded on BTC/USDT's perpetual contract (in USD billion) During the month, Binance Futures displayed a daily average of $1.7 billion worth of contracts traded. On January 14th, the platform recorded one its highest single-day volume, with over $3.5 billion worth of perpetual contracts traded as crypto markets rallied. In January, volume on Binance Futures displayed a +85% month-on-month increase, with $56 billion traded across its perpetual contract markets. Ĭrypto spot markets Table 1 - Overview of the largest assets by market cap (EOM - January 2020) Kyber Network ( KNC ) announced plans for a new token economics system: Katalyst. For more on ETHBNT and other Bancor Relay tokens, please read more here. Furthermore, this new protocol relies on ChainLink ( LINK ) for price oracle data.īancor ( BNT ) successfully completed its multi-chain airdrop of ETHBNT, which was supported by Binance and distributed to all users. The Aave Protocol ( LEND ) was launched on January 9th with new features such as Flash Loans, aTokens, and perpetual loans. ![]() Įthereum Classic (ETC) had its own fork (“Agharta”), which improved the interoperability with the Ethereum.įor ZCoin-holders, the window for users to convert zerocoins to Sigma ended on January 20th. ![]() This hardfork delays once again the “difficulty bomb” by 4 million blocks to provide additional time for ETH’s full transition to PoS. Block times for Ethereum came down from over 17 seconds on January 1st to around 13 seconds for the end of the month, according to Etherscan. Regarding project fundamentals, Ethereum activated its Muir Glacier upgrade, through a hardfork at block 9,200,000 (January 2nd). The aggregated cumulative open interest is now around $271 million (as of January 31st). Once again, it should unlock new trading opportunities for traders and offer additional tools for risk management from the perspective of miners. In Binance derivatives markets, not less than 8 new trading contracts were added to the exchange. Looking at the details of price movements for specific names, DASH and ZCoin (XZC), two mid-cap cryptoassets, stood out as an illustration of this calendar effect as they exhibited respective monthly price increases of +181.5% and +179.7%. Specifically, the altcoin marketcap moved from $61 billion to $86 billion, an increase by ~ +40%. In January, the market displayed positive gains across most cryptoassets, with the total market cap rising from $193 billion to $255 billion, with Bitcoin’s dominance remaining in the 65-66% territory. Believably, in equity markets, the impact of this calendar effect is said to be strengthened on small to mid-cap stocks. In traditional markets, there is a calendar effect named “January Effect”: security prices are supposed to increase in January at a faster pace than in any other month. ![]() January 2020 began with Proof of Keys on January 3rd, an event supported by Binance. Research View - Did the January effect happen in 2020?
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