Published
1 week ago on
June 20, 2024
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Cryptocurrency exchange Bitget continues to go from strength to strength with May going down as a record month for capital inflows. As the crypto bull market grinds on, Bitget has established itself as a leading global exchange for spot and futures trading, bolstered by complementary products including its eponymous web3 wallet.
May has demonstrated Bitget’s strength in the derivatives market in particular, where it’s become top dog for users seeking leveraged trading of assets such as BTC, ETH, and SOL. According to the latest CCData report, open interest on centralized exchanges has surged in May with Bitget leading the charge.
Open Interest Ramps Up
May was a mixed month for the crypto industry, seeing combined spot and derivatives volume on centralized exchanges declining by 20.1% to $5.27 trillion according to CCData. Open interest on derivatives exchanges rose by 30.5%, however, reaching $55.2 billion. Bitget was the primary beneficiary of this trend, seeing an impressive 39.2% increase in open interest which reached $9.74 billion for May.
Open interest on derivatives exchanges refers to the total number of outstanding derivative contracts that have not been settled or closed. It is a key indicator used in analysis of the derivatives market, providing insights into market sentiment and potential price movements. Each contract has both a buyer and a seller, but for open interest, each pair counts as one open contract.
Capital Inflows Intensify
Further evidence of Bitget’s record-breaking month can be seen from capital inflows, as detailed by DefiLlama in its CEX Transparency dashboard. Bitget recorded the highest monthly inflow of all centralized exchanges in May, receiving $975.4 million in deposits. Average leverage used by derivatives traders on Bitget is also significantly higher than other CEXs at 4.61x. By comparison, the figures for Binance and OKX stand at 0.19x and 0.32x respectively.
There are a number of factors that have contributed to Bitget’s impressive growth over the past 12 months. Improvements in UX and to its mobile app have been accompanied by an aggressive token listing policy. The exchange routinely lists popular new tokens, including native assets for L2s and memecoins, quicker than the competition. It’s also been swift to support emerging ecosystems such as Bitcoin Ordinals.
In May alone, Bitget listed 62 tokens including top performers such as TURBO, LIFEFORM, and WOJAK, all of which posted triple-figure percentage gains following their introduction. Another 19 tokens were listed on PoolX, the exchange’s launchpad which allows users to earn an allocation in return for staking USDT. 427M USDT was staked in May through PoolX in return for new tokens such as UDS and APRS.
Amidst a busy month for Bitget, the exchange also appointed Gracy Chen as its CEO, who succeeded Sandra Lou, and released a Signal Bot for Telegram to provide trading insights. While the first half of June has been marked by a slight pullback in digital asset prices, the market has picked up again, prompting hopes that the bull market still has some way to run.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
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