Binance now holds nearly 49% of Ethereum open interest across major centralized exchanges, its highest share since 2023, as derivatives traders continue to maintain exposure despite ETH’s latest correction.
According to CryptoQuant, Binance now accounts for nearly 49% of Ethereum open interest across major centralized exchanges, its highest share since 2023. CryptoQuant contributor Darkfost said ETH-denominated open interest on Binance has returned to around 2.46 million ETH even after the recent market correction.
Ethereum has fallen from about $2,775 in late September to around $2,500, a decline of nearly 10%. Binance’s notional ETH open interest consequently dropped by roughly $600 million, while $345 million in long positions were liquidated between Oct. 8 and Oct. 9.
But Binance’s open interest measured in ETH rather than dollars shows that futures participation has not fallen alongside the price.
Binance ETH Open Interest Returns to 2.46 Million ETH
Ethereum-denominated open interest on Binance has returned to approximately 2.46 million ETH, around the same level seen in late September.
That distinction is important because the roughly $600 million reduction in notional open interest partly reflects Ethereum’s falling dollar price rather than an equivalent decline in the number of ETH represented by outstanding futures positions.
In ETH terms, traders have rebuilt exposure after the liquidation event.
Darkfost wrote that despite the correction, “the amount of ETH committed to Binance futures has therefore not declined.”
The latest reading follows another period of elevated derivatives activity on the exchange. CryptoQuant previously reported in August that Ethereum futures open interest on Binance had climbed to around $6.4 billion, its highest dollar value since January.
Binance Captures Record 49% Share of ETH Futures Open Interest
The larger change is Binance’s share of the overall Ethereum derivatives market.
Binance now accounts for almost 49% of ETH open interest among the major centralized exchanges tracked by CryptoQuant, marking its highest level since 2023.
That means nearly one out of every two ETH represented in open futures positions across those exchanges is currently concentrated on Binance.
The increase in market share came while ETH itself was correcting and leveraged longs were being liquidated, suggesting Binance gained relative derivatives share even as the wider market went through a deleveraging event.
Open interest alone does not show whether those traders are positioned long or short. It measures outstanding derivatives contracts that have not yet been closed or settled. Elevated open interest therefore signals greater outstanding exposure, but directional positioning requires additional indicators such as funding rates and long-to-short ratios.
Binance Dominance Rises Despite MiCA Troubles
The derivatives milestone also comes during a difficult period for Binance’s European regulatory operations.
Binance had applied for authorization under the European Union’s Markets in Crypto-Assets regulation through Greece. In June, the exchange said Greece’s Hellenic Capital Market Commission had completed its review and considered the application compliant with MiCA requirements, subject to further European review.
The process did not result in a license. Binance withdrew its Greek application on June 24 and said it would pursue authorization through another EU member state.
A Wall Street Journal report in September, subsequently covered by CoinDesk, said high-level intervention had contributed to Greece stalling an application that regulators had previously considered complete.
Binance’s European position has remained under scrutiny since then. Reuters reported on Oct. 1 that EU authorities were questioning whether Binance continued serving customers despite instructions to wind down unauthorized operations. Binance has maintained that it complies with applicable regulations and remains committed to obtaining MiCA authorization.
Against that backdrop, Binance increasing its Ethereum futures open-interest share to 49% shows that its derivatives business remains dominant even while its European licensing situation remains unresolved.
ETH Traders Stay Active After Liquidation Flush
The combination of falling ETH prices, $345 million in long liquidations and a recovery in ETH-denominated open interest leaves the derivatives market heavily populated after the latest correction.
The key difference is where those positions are now concentrated, Binance’s 49% share means changes in leverage, funding and positioning on the exchange could carry greater weight in Ethereum’s derivatives market than they did when open interest was spread more evenly across competing venues.
With approximately 2.46 million ETH again committed to Binance futures, another sharp move in Ethereum could expose a large pool of leveraged positions to further liquidations depending on how traders are positioned.
Also Read: Bitmine Buys 12,532 ETH, Holdings Hit 6.03 Million as 5% Ethereum Cap Nears
