With so much action in the crypto derivatives space, you may be wondering where Digitex Futures will fit in. Here, you’ll discover the potential of our and its native DGTX token. The fact that many more exchanges are offering derivatives products is a good sign. It means that the market is growing and there’s plenty of room for newcomers–especially ones as innovative as Digitex Futures.
The Current State of the Crypto Derivatives Market
The crypto derivatives market has been on a tear since the middle of last year. More and more entrants are getting in on the action and some analysts even believe that it could grow to by the end of 2020.
Starting off with a handful of players for retail traders and two prominent Bitcoin futures offerings for institutional investors in the shape of CME and CBoE, crypto derivatives has seen massive change along with its stellar growth.
Launching right at Bitcoin’s all-time high of nearly $20,000, and then presiding over its crash, Bitcoin futures have often been credited with the drastic fall in the asset’s price. In fact, after a savage bear market in 2018 and a discouraging start to 2019, CBoE withdrew its offering from the market.
But then Bitcoin’s price started to go parabolic again off the back of major announcements and investment in the space, and futures started taking off once more. Hitting records left and right in both retail and institutional trading, crypto derivatives saw explosive growth from the summer of last year onward.
Bakkt appeared on the scene, CME began offering options, OKEx toppled BitMEX in terms of trading volume, and Binance threw its hat into the arena in the fall. Smaller players like Derebit have also seen their volumes rising and on , crypto derivatives saw its busiest trading day of 2020. The total trading volumes of futures and options were up by 9% for BTC and 16% for ETH.
What Does This Mean for Digitex?
What does all this mean for Digitex Futures as we enter the home stretch and get closer to the mainnet launch? That the crypto derivatives market is not only growing but maturing. There really couldn’t be a better time to shake up the current state of affairs with zero fees and our with the sickest UI in crypto.
Let’s take a look at some of the key players and numbers. According to a by CryptoCompare, OKEx was the top crypto derivatives exchange in December 2019, trading at a total of $99.6bn. Huobi and BitMEX came next with $76.5bn and $53.1bn respectively.
That’s an awful lot of money flowing through the ever-expanding space–and that’s just three exchanges! It’s also an astonishing amount of commissions being siphoned off of traders. Just imagine how much money exchanges are making charging fees on every single trade! Digitex will allow traders on all these platforms to trade without losing profits in fees.
Not only that but with the very first trading ladder to be brought to the crypto space, we’re primed to grab our slice of the rising crypto derivatives pie. As one of our Trading Battle competition winners, Cryptrader commented, “I have been in this space since crypto futures first came onto the scene. It has been interesting seeing the progression in UI and products offered. I can say with 100% confidence that Digitex Futures has the most user-friendly UI for any scalper to use in the crypto space.”
BTC Perpetuals Are the Most Popular Products
Let’s also take a look at the products people are trading. Far and away the most popular products in the crypto derivatives space are Bitcoin perpetual futures. The most-traded products by monthly volume were BitMEX’s BTC perpetual ($53.1bn) and Binance’s perpetual future ($29.4bn).
We feel pretty confident that we made the right call in opting for perpetuals as the right financial instrument to trade. But while Bitcoin steals most of the action, altcoin derivatives are also burgeoning as the spot markets remain pretty flat.
ETH and XRP Futures Also Gaining Traction
Not only did crypto derivatives see its busiest day of 2020 earlier this month but there was a marked surge in ETH futures trading as well. Futures trading on ETH hit $3bn on Jan 15, tripling its volume from the day before.
“For me, it’s a sign that the market gets more mature and sophisticated,” Deribit’s COO Marius Jansen told The Block. “And the price surge: inevitable when more and more players are entering the market, we continue to see more interest from new parties in Bitcoin. Eventually, you can see that in the price action as well.”
Other developments happening are surrounding XRP. More and more platforms including Binance and OKEx have added XRP futures trading to their offering. In fact, Ripple surged by 10% as Binance added its on its platform.
This information gives us a great indicator as to which markets to add next as soon as we’re up and running–and just how many people will be attracted to our rapid-fire trading interface and the scalping style of trading.
Digitex Futures is currently in its beta version, which you can sign up for and enter in our ongoing to practice your skills and win real DGTX prizes. With a mainnet launch coming on on April 27, get ready to discover the potential of DGTX.