- Cryptocurrency exchange Binance has now added virtual currency Cardano (ADA) for its quarterly futures with USD.
- The contracts have a fixed settlement date and are currently trading at 0.12333 ADA/USD.
- The leverage adopted for the ADA/USD futures has not changed as is stable at 75 times for all contracts.
The world’s leading cryptocurrency exchange Binance has now added virtual currency Cardano (ADA) for its quarterly futures with USD. The leader that it is, Binance, for the first time, added an alternate coin quarterly futures contract. The contracts have a fixed settlement date and are currently trading at 0.12333 ADA/USD. As exclaimed by the CEO of Binance Exchange, Changpeng Zhao, it is the season for altcoins as Bitcoin has been stable for a long time now.
Furthermore, Binance is the exchange with the highest market share for altcoin perpetual futures. The dominance grew from 19% to 41% since mid-June.
Growth of the Altcoin Futures Market
The unusual sluggishness of Bitcoin prices since March has led to the evolution of the futures market for alternate cryptocurrencies. There has been a noted growth in the price of ADA that has grown 200% in volume since a low in March. The positive effect on price is mainly dominated by the transition to a Proof-of-Stake network early next month. The 24-hour volume on 9th July 2020 crossed trades of $400 million in ADA perpetual contracts.
The Shelley upgrade expected to have 50-100 times more decentralization with Binance Futures dominating the futures market among all the exchanges in the world. It took less than two weeks for the ADA daily volume to grow from $40 million to $170 million. The leverage adopted for the ADA/USD futures has not changed as is stable at 75 times for all contracts.
Several reasons for the rise in investments through Binance
Firstly, the capital-efficient platform has been a hit among newcomers. Investors can look to make huge profits with minimal investments. The leverage offered is quite high as compared to other platforms. Hence, making a fortune here is quite easy. The organization assists short term as well as long term investors to earn profits from all types of contracts.
Experts opined that the futures market could be risky but Binance has got all of them covered. The derivatives market has soared more than 32% in May 2020 especially with Binance. Other exchanges have seen a decline in their market share due to various reasons.