Appetite for rising altcoins on Binance.com
To support its remarks, the Binance Research team uses the many data they have at their disposal on the different marketplaces that Binance offers,
According to the press release, the dominance of Bitcoin (BTC) in terms of trading volumes on Binance experienced a sharp decline between January and February, from 40% to 27%. According to Binance Research, this is the largest variation in this direction from month to month to date.
A variation of such magnitude could be seen as the telltale sign that many investors are breaking away from Bitcoin and turning to other cryptocurrencies for trading:
“ If this trend were to continue, it would mean a greater appetite for altcoins on the part of market players. ”
On Binance.com, last month’s rise in altcoin trading was dominated by Ether (ETH), with a total increase in its monthly volume of + 158.6%, while being followed by XRP, ETHBEAR, LINK, BNB, XTZ then LTC.
Similar trend On Binance Futures
With regard to Binance Futures, the platform offering futures contracts and therefore more focused on professionals, the picture is similar.
The tendency of traders to turn to altcoins is mainly due to the fact that Binance Futures has expanded its product offering with the addition of 13 new pairs for futures.
Relative to January, the total volume of contracts engaging altcoins in the month of February increased from $12.6 billion to $32.8 billion, an increase of 160%. During the month, daily volume on the altcoin markets averaged $ 1.1 billion, an increase of nearly 300% from January.
With the addition of 13 new pairs, the dominance of Bitcoin continued to decline throughout the month of February, reaching a low level of 55%. As of February 29, the dominance of Bitcoin open positions was 59%, compared to 73% as of January 31.