Binance Captures Over 60% Share In SpaceX Perpetual Futures As Valuation Tops $3T

Binance has now become the leader in the trading of SpaceX perpetual futures, with more than 60% of the market share. This feat comes as Elon Musk-led SpaceX’s valuation briefly hit the $3 trillion mark in pre-market trading on Tuesday.

SpaceX Perp Is Now Binance’s Second-Largest Futures Product

The SpaceX perpetual futures pair SPCXUSDT has quickly soared to become the second most traded futures product on Binance following Bitcoin perpetual contracts, the exchange reported. As of June 13, the product had over $5.6 billion in rolling 24-hour trading volume.

Moreover, it brought over $9 billion combined for the pre-IPO and post-IPO trading activity. However, the SpaceX IPO campaign was cancelled after xStocks didn’t get the desired SPCX share allocation. At the time, Binance’s CZ said they’re committed to protecting users and refunded the entire amount alongside a tokenized stock airdrop.

The exchange also noted that it is the market leader in both centralized and decentralized trading of SPCXUSDT. Binance also had the highest open interest volume of all the venues, with $190.59 million on one side as of June 15.

Data shows that SpaceX’s Nasdaq listing sparked a massive surge of interest in the contract. One day after SpaceX filed for its S-1, Binance introduced the perpetual product, which enables traders to participate in speculation prior to SpaceX’s IPO.

Before the IPO, the contract was a pre-IPO perpetual on its decentralized futures platform. At that time, the price was determined by the activity on Binance’s global order book.

After SpaceX went public, the contract became a standard perpetual futures contract with real-time pricing information on the Nasdaq. When the aerospace firm amended its filing to account for higher share issuance, Binance said it became the only exchange to rebase the contract based on the dilution stats.

Surge In Retail Investor Interest

The exchange added that the humongous trading volume of SpaceX perpetual futures also depicted the growing interest among retail traders to get exposure to high-profile companies. It said, “While this is an early snapshot, the scale of trading activity recorded on Binance suggests demand for products tracking high-profile companies before and after their public listings.”

In addition, the demand for direct stock offerings on Binance has been exceeding 80% from users who don’t have easy access to U.S. equity markets.

The strong trading volume was also a positive sign of early interest in getting tokenized stock exposure in major companies. Further, Binance said the current market conditions and investor sentiment will remain key factors in future demand after the stock went public.