Binance’s Share of ETH Futures Open Interest Nears 2023 High

Binance’s share of Ether futures open interest has reached nearly 49% among major centralized exchanges tracked by CryptoQuant, according to an analysis posted by contributor Darkfost on October 12.

Ether fell from about $2,775 in late September to roughly $2,500. During the same period, Binance’s open interest measured in Ether recovered to about 2.46 million ETH, matching its level at the end of September.

Open interest measures the value of outstanding futures positions. Binance’s dollar-denominated open interest fell by about $600 million during the correction. The decline partly reflected Ether’s lower price, which reduced the dollar value of contracts even though the amount of ETH tied to the positions remained similar.

“Despite the correction, the amount of ETH committed to Binance futures has therefore not declined,” Darkfost wrote. The analysis attributes the change to traders rebuilding or maintaining leveraged positions after liquidations rather than closing their exposure on a large scale.

About $345 million in Ether long positions were liquidated within 24 hours between October 8 and 9. Long positions are bets that an asset’s price will rise. Exchanges automatically close them when traders no longer meet margin requirements.

The nearly 49% share covers only the major centralized exchanges tracked by CryptoQuant. It excludes other exchanges and decentralized derivatives platforms and does not by itself establish market manipulation.

The concentration leaves a larger share of tracked Ether futures positions exposed to conditions at Binance. An outage, margin change or forced liquidation at the exchange could affect many of those positions.

Binance’s European licensing status remains unresolved. Greece has been reported to be preparing to grant the exchange a license under the European Union’s Markets in Crypto-Assets framework, while Darkfost cited ongoing issues with Binance’s authorization.

Traders will be watching whether Binance’s Ether open interest remains near 2.46 million ETH or declines if Ether falls further. U.S.-listed Ether exchange-traded funds have recorded nine consecutive sessions of outflows, while futures exposure has remained near its late-September level.