Odaily Frontline｜The DeFi boom pushed Binance’s August futures trading volume to a new high

This article comes fromDecrypt, by Shaurya Malwa

Odaily Translator |

Summary:

• This article comes from

• , by Shaurya Malwa

• Odaily Translator |

secondary titleSummary:Binance recorded its highest futures volume ever in August.

The total volume of futures trading on Bitcoin and various altcoins hit $195 billion.

According to the Binance exchange, the rise of DeFi projects has promoted the upsurge of altcoin futures.

Cryptocurrency exchange Binance

Binance Futures August Trading Report

Futures trading volumes had their best month ever, with billions of dollars traded across all altcoin futures, Zhong said. Additionally, as Bitcoin surged to $12,000 in early August, Binance’s open interest topped $1 billion for the first time since its inception.

Binance pointed out that as one of the exchanges with the largest trading volume and retail participation rate in the encryption field, Binance has benefited from the prosperity of the futures market brought about by the rise of various DeFi projects.

According to official reports, in August, Binance launched more than 17 new futures contracts, including DeFi projects such as YFI, YFII, etc.

In August alone, Binance’s market share in the altcoin futures market was as high as 41%, and stabilized in the 35-40% range during the last week of August. On Aug. 14, the exchange even set one of the highest single-day trading volume records for altcoin futures, with more than $5.8 billion traded, the report said.

“A significant portion of the increase in volume was attributed to altcoin contracts as traders turned their attention to altcoins, especially DeFi-related cryptocurrencies,” the firm said.

Overall, total Binance Futures trading volume rose 79% month-on-month to $195 billion, the highest monthly volume since its inception. Meanwhile, Bitcoin’s total volume dominance has declined throughout the month as altcoin volumes have grown.

secondary titleDeFi Market Drives Growth in Altcoin TradingAccording to Binance, most of the activity in the altcoin space is due to investors betting on a large number of new projects.

Last month, no-name DeFi projects with fun-sounding names like Sushiswap and Kimchi Finance mirrored efforts by yield aggregator Yearn Finance to offer investors a variety of yield farming projects — which lock in millions of dollars worth of cash. Crypto assets, lent to other traders, with annual interest rates as high as 100,000%.