- CME catches up with Binance in terms of Open Interest.
- BNB’s price remains unaffected as it continues to surge.
Binance [BNB], with its recent release of proof of reserve data, has provided insights into the advancements made by the exchange. In this article, we’ll be looking at whether the exchange was able to establish a competitive edge in the centralized exchange sector.
Declining open interest
It was found that the Chicago Mercantile Exchange (CME Group) is coming close to Binance in terms of Bitcoin Open Interest. These two major players, wielding considerable influence over Bitcoin prices, are now tied with each holding $5 billion in open bets.
This milestone suggests a potential reordering of the hierarchy in the cryptocurrency market, with CME Group gaining prominence in the realm of crypto exchanges.
Potential impacts
This shift could translate into a competitive disadvantage for Binance, as traders might favor platforms perceived as stronger players in the market.
A consequence of losing dominance in Bitcoin Open Interest may be a decline in trading volumes on the Binance exchange, as traders seek higher liquidity and opportunities on platforms perceived as more influential.
The market perception of Binance within the cryptocurrency community may also be affected, as traders and investors reevaluate their trust in the exchange’s standing.
Additionally, Binance might encounter challenges in attracting and retaining institutional clients in the derivatives market. This is because of the preference for exchanges with established credibility and reliability.
Update on Bitcoin Derivative Exchange Dominance
The #CME is catching #Binance ?Ive been following this and must report that the @CMEGroup has caught @binance in Bitcoin Open Interest. This is highly significant.
These are the 2 players with the most influence over the… pic.twitter.com/rtD4bpQbB6
— MartyParty (@martypartymusic) February 8, 2024
These factors could impact the BNB token going forward as well.
According to AMBCrypto’s analysis of Santiment’s data, it was seen that the weighted sentiment around the BNB token had declined. This meant that the number of negative comments around BNB had outnumbered the positive ones.
The decline in sentiment occurred despite a surge in BNB’s price. This suggested that a lot of people don’t have faith in BNB’s rally.
How much are 1,10,100 BNBs worth today?
At press time, BNB was trading at $320.53 and its price had grown by 2.47% in the last 24 hours.
Source: Santiment
Due to the upward trajectory of its price, optimism among traders regarding BNB persisted.
Over the recent days, the proportion of long positions undertaken for BNB has increased. It reached 51.69% at the time of writing,.
Source: Coinglass
