Trading Volume Surged 512% In Q3

Crypto Exchange FTX US reported great growth during 2021 third quarter with an average daily trading volume of approximately $360 billion, a 512% jump from the second quarter.

FTX US’ user count surged 52% quarter-over-quarter, increased its headcount by 30%, and held about 4.5% of the U.S. crypto spot market’s volume by September 30th, a 2% increase compared to the beginning of the quarter. Total value reached $25 billion.

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Brett HarrisonDuring a Yahoo Finance discussion, FTX US President, weighed in. interviewYou can find this link:

FTX US has been able to grow rapidly and become the most popular and in-demand cryptocurrency exchange in America thanks to the trust and support from our users. But we are only scratching the surface. We intend to expand our current offerings as well as rapidly expanding into other areas like NFTs and payment services.

Institutions Make 60% Of FTX US’s Trading Volume

The growth shows a contrast with the Q3 report from crypto exchange giant Coinbase, which showed a 29.2% drop in their trading volume and a transacting user count decrease of 16%, from 8.8 million to 7.4 million quarter-over-quarter.

The main difference between FTX US and Coinbase, Harrison explained, is that the latter sees more retail volume, while 60% of FTX US’s volume comes from institutions like hedge funds, high-frequency and proprietary trading firms.

FTX had great brand exposure and marketing strategy during Q3. Harrison stated that the successful numbers are partially owed to the sports partnerships with distinguished athletes such as Tom Brady -and his wife, Gisele Bündchen-, alliances with Major League Baseball and the Miami Heat, as well as the weight of institutional investors in the platform.

Harrison commented to a news portal: “We’re now really being able to activate those partnerships and use them to advertise for our brand, to run promotions, to run giveaways and get people excited about signing up for our product,”

He also commented on FTX US’s aim to expand into the NFTs ecosystem, having recently launched a Solana-based NFTs marketplace of their own that focuses on providing “simpler, safer and easier tools to remove the barriers (…) to enter the NFT space”.

There is an interconnection between their NFT and the partnerships with athletes

We are excited to expand our offerings in the FTX market by partnering with athletes who have NFTs or intellectual property.

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FTX US Plays a Role on Crypto Regulatory Policy

FTX US bought LedgerX in the third quarter of 2018, attracted to the volume of crypto derivatives trading. Now rebranded under FTX US Derivatives.

The acquisition has the purpose of offering retail and investors clients licensed crypto futures and options, as well as utilizing it as a shortcut to not spend “what could have been years” to receive licenses. It also brought enthusiasm from institutional customers.

Brett Harrison also commented further on this subject.

FTX US Derivatives allows us to license crypto options and futures for our institutional and retail clients. It also gives us the opportunity to reshape US derivatives markets. We will continue to communicate with regulators and hope to be a key part of defining US crypto regulation policy.

Market cap for crypto total at $2.8 Trillion | Source: TradingView

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