The recent heated argument between FTX CEO Sam Bankman-Fried (SBF) and Binance CEO Changpeng Zhao (CZ) has heightened market volatility for digital assets. However, the heads of both cryptocurrency exchanges have corrected their position on their earlier statement.
Reason for Surge of Binance Spot Vol
According to Vetle Lunde, Senior Analyst at Arcane Research, Binance is working hard to maintain its lead. She noted that Binance's dominance over spot volume had increased significantly.
After the charge elimination announcement, its market share dominance increased from 0–60% to 80–90%. She noted that 40% of perp open interest (Ethereum + Bitcoin) is accounted for by Binance.
A month high of $118,970.98 was reached by Bitcoin's mean liquidated volume in long futures contracts on China's Binance, according to Glassnode Alerts. It stated that the previous month's high, $104,869.88, was seen on October 22, 2022.
It did note, however, that the open interest in perpetual futures contracts for Bitcoin on the FTX market had dropped to a 16-month low of $711,533,975.75. On July 8, 2021, the most recent 16-month low of $723,290,897.69 was recorded.
FTT Bankruptcy is Improbable
According to Vetle Lunde, FTX OI dom has decreased significantly. From second to fourth, it dropped from 25% to 14%.
She emphasized that FTX's BitMEX moment might be right now. However, after two reputational blows in 2020, Mexico was unable to bounce back.
According to Senior Analyst, FTX will have a difficult time repairing its reputation from this point forward. However, it's possible that the company won't go bankrupt. The relevance of FTX will be affected by this influence for a long time.