- Coinbase, a major player in the cryptocurrency market, has announced its decision to expand its futures trading services.
- The upcoming SOL – PERP and AVAX – PERP markets are planned to be launched on Coinbase International Exchange & Coinbase Advanced, subject to liquidity conditions.
- Initially, the platform offered four perpetual contracts related to Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), with a maximum leverage of 5X for all except Ripple.
Coinbase, the largest cryptocurrency exchange in the United States, announced that it will expand its futures trading services with SOL and AVAX: Here are the details!
Coinbase Launches SOL and AVAX Futures Trading
Coinbase, a major player in the cryptocurrency market, announced its decision to expand its futures trading services. Starting from November 14, the platform will offer perpetual futures contracts for Solana (SOL) and Avalanche (AVAX). This step significantly expands Coinbase’s derivatives market capabilities, aiming to provide traders with more options in the rapidly changing crypto landscape.
The upcoming SOL – PERP and AVAX – PERP markets are planned to be launched on Coinbase International Exchange & Coinbase Advanced, subject to liquidity conditions. Perpetual futures contracts are contracts without an expiration date, unlike traditional futures contracts, allowing traders to continuously speculate on the price movements of the underlying asset.
This flexibility provides opportunities for traders to engage in arbitrage, use leverage, and hedge risks, essential tools in the crypto market due to its volatility. However, these contracts require careful management from investors, given the risks associated with excessive leverage and liquidation.
Coinbase emphasizes compliance with local regulations regarding crypto derivatives. Therefore, perpetual futures on the Advanced Trading platform are only available to users in specific non-U.S. regions. The compliance of Coinbase International Exchange with these regulations is further strengthened by regulatory approval received from the Bermuda Monetary Authority in September.
Initially, the platform offered four perpetual contracts related to Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), with a maximum leverage of 5X for all except Ripple, which had a maximum leverage of 3X. All contracts are settled using the USD Coin (USDC) stablecoin, adding a stability layer to transactions.
Continuous Futures Trading Growing in the Crypto Market
The introduction of perpetual futures trading into the crypto markets is met with increasing interest and demand. According to Laevitas data, as of November 10, the global centralized exchange (CEX) perpetual volume reached $195.3 billion.
This trend reflects the growing appeal of perpetual contracts among traders, and competitors of Coinbase, such as Binance and OKX, are also achieving significant volumes in this area. Conor Ryder, a research analyst at Kaiko, highlighted the increasing popularity of these contracts, noting that the spot volume ratio to Bitcoin perpetual contracts has been at its highest level for almost two years.
