BitMEX used to be the world’s top crypto derivatives exchange with several billion dollars of trading volume per day. However, BitMEX has had a particularly rough week where the Department of Justice and Commodity Futures Trading Commission (CFTC) simultaneously filed charges against BitMEX, and BitMEX’s Executives are for the most part on the run besides one who was arrested and released on bail.
Due to this, hundreds of millions of dollars of Bitcoin (BTC) have been withdrawn from BitMEX, and BitMEX’s trading volume has declined to just $1 billion per day. Basically, BitMEX is getting rekt, and is a mere shadow of its former self at this point.
That being said, BitMEX is not the only major global crypto derivatives exchange, and other big crypto derivatives exchanges have picked up BitMEX’s slack.
Specifically, Huobi Global’s crypto derivatives exchange now has $3.8 billion of volume per day, Binance’s crypto derivatives exchange now has $3.3 billion of volume per day, and OKEx’s crypto derivatives exchange has $1.2 billion of volume per day.
Basically, BitMEX’s catastrophe has been a blessing for other major crypto derivatives exchanges, and they have seen significant increases in volume.
Most importantly, crypto derivatives trading is clearly here to stay even if BitMEX gets totally shut down. The crypto derivatives industry is decentralized enough that even if a big player like BitMEX goes down, it doesn’t eliminate the industry. Instead, traders simply move to other exchanges.
Thus, although BitMEX is withering away due to pressure from the United States government, Huobi Global, Binance, OKEx, and crypto derivatives trading in general are still going strong.