- Binance has launched its new Bitcoin Dominance perpetual contract, BTCDOM
- The BTCDOM contract can have a most leverage of 25x and use Tether (USDT) as collateral
- BTCDOM is a cryptocurrency index evaluating Bitcoin to the highest 20 digital property on Binance by market cap, excluding stablecoins
- The BTCDOM index is uncapped which suggests it could actually commerce past the 0 – 100% vary of the common Bitcoin dominance
- Buying and selling will begin on June twenty first at 3:30 am UTC
The favored crypto trade of Binance has announced that it is going to be launching a brand new perpetual that tracks Bitcoin’s dominance within the crypto market. The perpetual contract, often called Bitcoin Dominance (BTCDOM), is an index that measures the dominance performance of Bitcoin versus the highest twenty digital property on Binance. by way of market capitalization. The index will exclude all stablecoins.
25x Max. Leverage, Tether (USDT) To Be Used as Collateral
The Bitcoin Dominance (BTCDOM) perpetual contract can have a most leverage of 25x and can use Tether (USDT) as collateral. Buying and selling of the BTCDOM Perpetual contract will begin on the twenty first of June at 3:30 am UTC.
Bitcoin Dominance (BTCDOM) is Uncapped
In contrast to the extra generally identified Bitcoin Dominance with a spread of 0 to 100%, the BTCDOM index might be uncapped to make it extra appropriate for derivatives buying and selling.
According to the staff at Binance, the Bitcoin Dominance (BTCDOM) index will measure the demand for Bitcoin relative to the highest 20 altcoins. When Bitcoin beneficial properties market share relative to the altcoins, BTCDOM will achieve worth. Conversely, when altcoins achieve market share relative to Bitcoin, BTCDOM will lose worth.
Within the state of affairs the place Bitcoin and the highest 20 cryptocurrencies both drop or rise in worth on the identical price, BTCDOM will stay the identical.
Weekly Rebalancing of BTCDOM and Particular Changes
The BTCDOM index might be calculated utilizing the weighted common costs of its constituents and might be rebalanced weekly to seize the present market situations.
Within the case the place one constituent of the index faces drastic market situations resembling a delisting or a drop in commerce quantity, Binance will carry out a particular adjustment by both excluding the affected digital asset or recalculating its weight within the index.