Binance introduced its future contracts’ platform in the second half of last year, and since then, the development has been as good as expected. Taking the game forward, the company introduced perpetual contracts on Binance Futures in January 2020, and within a month, it has seen a phenomenal growth of about 250%. In its tweet on Thursday, the company also said that the perpetual contracts are now valued at 70 million USDT.
What Information Does Open Interest Convey?
Since the inception of 8 Altcoin perpetual contracts in January, open interest on #Binance Futures Altcoin perpetual markets has collectively grown over 250% to 75 Million $USDT.https://t.co/h5KXSNhfwy
— Binance (@binance) February 6, 2020
In an article published on the Binance website, titled “What Interest Does Open Interest Convey?” the world’s leading crypto company stated that understanding open interests and its impact on crypto prices it can help you make better trading decisions. It further added,
“Many analysts believe that interpreting changes in open interest can provide valuable information about the market. For example, if open interests are increasing along with prices and volume, it might indicate a bull trend. Open interest can help traders get a sense of whether crypto markets are strengthening or weakening. It can also be used to identify trading opportunities you might otherwise overlook.”
Binance as a whole seems to quite dedicated towards developing an ecosystem where users get a better reward for their time, efforts, and investments, rather than solely focusing on personal growth. This has allowed the company to garner credibility and stay relevant in the increasingly competitive markets.
Futures market, coupled with immaculate and productive information, is what can keep the market moving forward at a time when conventional crypto trading is getting redundant by the day. In other words, the future progress of the market highly depends on the number options the industry can provide to a traditional investor.
Binance realizes this perfectly and believes that liquidity is key to future growth and expansion. In its article, it said,
“With growing open interest for both Bitcoin and Altcoins perpetual markets, traders on Binance Futures may enjoy better liquidity as market participation grows. This means that traders can transact orders efficiently and quickly with little or no price impact.”