OKEx Surpassed BitMEX in Bitcoin Futures Volume

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by Julia Sakovich · 3 min read
OKEx Surpassed BitMEX in Bitcoin Futures Volume
Photo: Shutterstock

OKEx surpassed BitMEX in the Bitcoin futures volume while exchanges face challenges in dealing with extreme market.

The cryptocurrency market fell prey to the global instability, which contributes to the catastrophic falling of Bitcoin, the largest cryptocurrency, from $9K level to $3k level. Starting from 7 March, the asset showed pressure on the resistance level, and continued the downwards trending until today, without indicating any strong bounce back signals yet.

OKEx Dominates the Bitcoin Futures Market

Despite the spot market is slowing down, Bitcoin’s derivatives market has been getting more attention, and the enthusiasm is quite visible in the Bitcoin futures market. Regarding the Bitcoin futures, BitMEX has been long dominated in the market, but now OKEx, another cryptocurrency giant, continues to closely follow BitMEX’s footprints and made a breakthrough in the Bitcoin futures trading volume. According to SkewAnalystics, OKEx outperformed BitMEX in terms of the 24h BTC Futures volumes, leading the Futures volume by reporting 15.95 billion, followed by BitMEX at 12.55 billion. Not only retail investors, but the flow of institutional capital is also tremendous in the market, which requires the crypto asset exchanges to have a professional and robust level of infrastructure to support the trading demands of the institutions, especially during the extreme market.

https://skew.com/dashboard/bitcoin-futures

Photo: Skew

Exchanges Face Challenges in the Extreme Market

Recently, Bitcoin price experienced a significant plunge, and the market is under dramatic volatility. BitMEX announced on their Twitter to come across a system breakdown for a short period because of the hardware issue on their cloud service, resulting in a pause in trading on the platform.

Due to this instability, some users even complained never to trade again on BitMEX because the platform’s market makers are trading with the users during the breakdown.

Similar issues happened on Binance, one of the world’s largest cryptocurrency trading platforms, and CZ, the CEO of Binance, also announced on Twitter regarding the latest maintenance both on their spot & futures trading system.

It is notable that CZ mentioned the futures ADL (auto-deleveraging) which is a method of counterparty liquidation when the insurance fund stops working, meaning the profitable users need to share part of the profits with the losing users. As Binance mentioned, they have used half of their insurance funds to reduce ADL, and they will inject new funds if it is used up.

However, Jay Hao, CEO of OKEx, another crypto exchange giant, holds different opinions by highlighting “In the past 24 hours, OKEx has achieved: 0% clawback in all markets and all pairs, and 0% ADL in profit trades.” From the data shown on OKEx website, it seems the insurance fund flow on the platform is more stable than Binance, implying OKEx hasn’t contributed the insurance fund to offset the losses. To explain, Hao mentioned it is equally important to protect users’ funds and their profits.

On the other hand, the CEO also mentioned OKEx’s trading service is quite stable without any maintenance during the extreme market except the APP didn’t work for a while, and processed almost 300k orders/second. What’s more, Hao highlighted their API worked properly, and it should be great news to the institutional traders.

Bitcoin News, Commodities & Futures, News
Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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