The crypto trading giant has set a new all-time high in 24-trading volume, exceeding $80 billion on both the spot and derivatives platforms. In total, more than $180 billion has been traded across the entire crypto market in the last 24 hours as of press time.
Binance Trading Volume Records New ATH
Tweeting on Monday (Jan. 4, 2021), Binance CEO Changpeng Zhao said that trading volume on the platform was twice its previous all-time high (ATH), reaching over $80 billion. Data from CoinMarketCap showed Binace spot volume at over $23.6 billion, while the derivatives volume was at $56.8 billion.
Such is the extent of the current increase in crypto trading volume that the $80 billion recorded by Binance is two times greater than the figures recorded between Nov. 15th, 2017 and Dec. 15th, 2017, the peak of the 2017 crypto bull run.
However, clearing $80 billion in trade did come at some platform disruption costs to the exchange with Zhao explaining:
“We saw some scaling issues today. We probably will see more issues as we continue to grow. We aren’t prefect, but we will fix them as quickly as we can. We appreciate your understanding and support!”
Exchanges experiencing service disruptions during periods of peak crypto trading activity are a common occurrence. Indeed, U.S. crypto trading giant Coinbase has earned notoriety for going offline when bitcoin’s price experiences a significant surge leaving customers unable to trade.
Back in Dec. 2020, Bitcoin’s run-up above the $20,000 price mark saw both Coinbase and Binance suffer service outages as high trading traffic overwhelmed their systems.
One-third of Crypto Derivatives Liquidations on Binance
Binance also accounted for the largest crypto derivatives wipeout recorded on the day. Over $664 million worth of crypto derivatives were liquidated on Binance, with the majority being over-leveraged long positions.
Indeed, Binance’s figures accounted for over a third of the almost $2 billion in crypto derivatives liquidated in the last 24 hours. Bitcoin’s swift retrace after reaching the $34,000 mark caught traders with over-leveraged longs unawares, resulting in one of the largest cryptocurrency derivatives wipeouts.
Bitcoin’s $5,500 decline to fill the $29,000 CME futures gap and the subsequent retrace of most altcoins also contributed to erasing over $70 billion from the total crypto market capitalization. Despite a resumption in altcoin gains as of press time, the crypto market size is still $150 million away from breaching the $1 trillion milestone.