Bitfinex Update: Introducing Bitcoin Dominance Perpetual Contract, Listing Cross-chain Token pBTC
The well-established cryptocurrency exchange Bitfinex announced on the 6th of this month that they will be launching a new perpetual contract product called "Bitcoin Dominance Perpetual Swap BTCDOM", allowing investors to trade on the fluctuation of Bitcoin's market dominance. In addition, the exchange has recently introduced its own social platform, Bitfinex Pulse, as well as a cross-chain token, pBTC.
- Bitcoin Dominance has lower volatility
- Introduction of social platform Bitfinex Pulse
Table of Contents
New Contract Product: BTCDOM
Bitcoin Dominance refers to the percentage of Bitcoin's market capitalization in the total cryptocurrency market capitalization. This data is closely monitored by the crypto community, traders, and competing coin projects, and is commonly seen as a market trend indicator for Bitcoin or alternative coins.
According to Coin Dance, as of the time of writing, Bitcoin's dominance is close to 68.06%.
The official announcement states that "Bitcoin Dominance Perpetual Swap BTCDOM" is the first contract trading product in the crypto market based on Bitcoin dominance. They claim that this is more capital efficient and cost-effective than directly going long or short on Bitcoin, with lower volatility.
The Bitcoin dominance contract will go live at 5 p.m. today. Bitfinex representatives mentioned in an interview with Cointelegraph:
Since the global markets collapsed in March due to the COVID-19 crisis, we have seen a significant increase in trading volume, with over $2 billion in trading volume within 24 hours of the collapse on March 13. Additionally, we believe that demand will continue post the block reward halving.
Trader's Chatroom: Bitfinex Pulse
Last month, Bitfinex also launched its own social platform Bitfinex Pulse to enhance communication among trading users. This move is similar to mainstream platforms like eToro, TradingView, allowing users to better understand the backgrounds and investment philosophies of top traders. Bitfinex emphasizes that they will not restrict discussion content but will not provide copy trading or follow functions.
Paolo Ardoino, Bitfinex's CTO, stated in a release:
We have officially launched Bitfinex Pulse in response to our users' demand for traders to publish relevant professional articles.
Observations suggest that it currently has low engagement, more like a crawler collecting posts from social media influencers.
Bitcoin Pegged Tokens: pBTC
pBTC is part of Bitfinex's pTokens series, pegged 1:1 to Bitcoin, primarily aimed at enhancing interoperability with DeFi. It is currently compatible with the Ethereum and EOS ecosystems.
CTO Paolo Ardoino approved the pTokens project in December 2019 and predicted that "cross-chain value transfer" would be a critical aspect of the cryptocurrency field this year. He mentioned:
We are actively developing other pTokens, including pETH, pEOS, pLTC, and pDAI. The new pTokens like pEOS and pLTC have already been deployed in the testing environment and will soon be available on the Ethereum mainnet.
According to The Block report, this well-established exchange remains highly competitive and maintains high liquidity, generating a profit of $21.4 million in the first quarter of this year, nearly double that of the previous quarter.
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