Cryptocurrency exchange FTX has overtaken competitors to become the second-largest exchange in the bitcoin futures market, behind only Binance, according to a report by Arcane Research.
From the end of June through now, FTX’s market share has grown from 9% to 16%.
FTX was founded by billionaire Sam Bankman-Fried, 29, in 2019. The exchange announced recently that its $900 million Series B funding round included more than 60 investors, including Paradigm, Ribbit Capital and Sequoia, and valued the company at $18 billion.
“The exchange has long been the second-largest futures market in the broad crypto sector, but their bitcoin futures have lagged behind OKEx, CME (Chicago Mercantile Exchange) and Bybit up until recently,” the report said.
Bybit’s bitcoin perpetual swap was the dominating futures instrument in April at around the time the cryptocurrency hit its $64,000 peak, according to the report.
“Paying attention to the Bybit OI (open interest) could be a viable indicator to gauge whether the sentiment is turning over exuberant in the future,” Arcane’s report said.
Global open interest recently surpassed $15 billion for the first time since May. Despite that climb, the market, in general, seems less over-leveraged given how the bitcoin denominated open interest sits at 330,000 BTC currently, according to the report.
“Both prior to the May 19th crash and the July 26th short squeeze, the bitcoin-denominated open interest sat at a far more substantial 400,000 BTC," Arcane said.
"This indicator suggests that the market is currently careful with leverage.”