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In early December, cryptocurrency exchange MEXC announced that its futures business had hit a significant boom in 2022, with an average daily trading volume growth of 1,200%. This data can be verified from third party public data.
On December 20, CoinMarketCap data showed that among the major exchanges, the daily trading volume of MEXC futures contracts reached $2.4 billion, ranking fourth in the world.
The main reason for the growth of MEXC futures trading is that the exchange has continuously improved the liquidity of the top 50 tokens by market capitalization since the beginning of this year. As a result of the third quarter of this year, liquidity in the futures business of MEXC reached the world’s leading level.
For futures traders, liquidity is the primary indicator, which directly determines trading fees and experience. This is because the better the liquidity, the better the depth, the faster the turnover, the lower the spread, the lower the trading fees and the faster the trading speed. Meanwhile, in tough market conditions similar to March 12, 2020, highly liquid futures products can avoid unintended “pin bar” patterns.
The figure below shows futures liquidity data for BTC_USDT and ETH_USDT on major exchanges. From July to November, with a trading depth of 0.05%, MEXC and Bitget liquidity ranked first and second, respectively.
Liquidity comparison between common exchanges
In addition to liquidity, the number of cryptocurrencies supported by futures exchanges and the rate of trading fees are also comprehensive indicators that traders take into consideration. One of the most important factors is the fee rate. The lower the fee rate, the lower the trading fees.
For Maker fees, Bybit has a fee rate of 0.01%, while Binance and others have a fee of 0.02%. On the other hand, MEXC reduced Maker fees to 0% from December 1 onwards, which is equivalent to waiving and transferring Maker fees to specific users. On Taker fees, MEXC, Bybit and Kucoin charge 0.06%, while Binance and Huobi have the lowest rate at 0.04%.
CoinGecko data shows that in terms of the number of trading pairs, Binance supports the most futures trading pairs, with 233 currently. However, there are different trading pairs of the same cryptocurrency listed on each exchange, such as BTCUSDT, BTCUSDC, etc. Excluding duplicate data, MEXC listed the most cryptocurrency futures products, with over 179, while Binance listed over 137.
Number of futures trading pairs in common CEXs
The number of listed cryptocurrencies appears to be more beneficial during a bull market. Due to the high frequency of project listings during a bull market, there will be a time difference between different exchanges. For some traders, cryptocurrency futures contracts with a smaller market cap may better suit their needs. However, with the end of the bull market, the frequency of project listings on the secondary market will gradually decrease, and the gap between the number of cryptocurrencies listed on each exchange will also gradually decrease.
The MEXC futures business emerged after the growth of the MEXC business, highlighting its liquidity and fee rate advantages for the first time on CryptoPotato.