Binance Futures to Launch ETC and XRP Perpetual Contracts

Binance Futures to Launch ETC and XRP Perpetual Contracts

One of the largest crypto exchanges in the world is none other than Binance and its futures trading platform is referred to as Binance Futures. They are planning to introduce two new perpetual trading contracts, which would be for Ripple (XRP) and Ethereum Classic (ETC), respectively. The announcement was made by Binance Futures on Tuesday, according to which these contracts will be paired against a stablecoin of the USD, which would be known as the USD coin (USDC). Traders who wish to use these contracts will be able to open long or short positions on the base assets and the leverage available would go as high as 75x.

XRP made its debut this year in January on the Binance Futures platform. Binance Futures was actually the first major exchange to have offered people these perpetual margined contracts with XRP and they had paired them with up with Tether (USDT) stablecoin. However, it didn’t take more than a week for the exchange to roll out a similar product, but this time it was for Ethereum Classic. The listing of the product alone on Binance Futures had caused its price to surge by almost 40% in a span of 24 hours, which is a clear testament to the power and influence Binance holds in the market.

Options contracts had also been added by Binance on its platform for both Ethereum and XRP back in late May. One of the key features that distinguish options and futures is that traders are not mandated to execute their contracts on a specified date. The addition of these two new financial products to the Binance Futures platform is made just when the exchange is about to celebrate its one-year anniversary in the market. Binance Futures had been established last year on September 13th, which is less than a week from now.

Since it was launched, Binance Futures has done everything possible for establishing itself within the derivatives market and a lot of the credit goes to the already existing huge user base that Binance enjoys. In turn, this has paved the way for some healthy competition in the derivatives market, which is always in favor of the consumer. When did the exchange try to carve its niche? It was back in April 2020 when the exchange, which has its location in the Cayman Islands, had decided to venture into the options trading market.

Its primary aim was to establish itself in the Deribit-dominated market. CryptoCompare produced a report, which showed that Binance is currently the third-largest exchange in the market in terms of the monthly volumes of derivatives in the month of August. OKEx and Huobi are the first two exchanges. While it cannot be predicted as to how successful these perpetual swaps for XRP and ETC will turn out in the long-run, all the indications highlight that these will definitely be another popular addition in the exchange’s arsenal. In fact, they might help Binance climb up a spot in the market and it may eventually reach number 1.