FTX.US Most Liquid Crypto Exchange in U.S.

November 22, 2021

by CCM

FTX.US Most Liquid Crypto Exchange in U.S.

Last updated on November 1st, 2022 at 12:59 am

The U.S. is home to many exchange platforms, including Kraken, Coinbase, Gemini and FTX.

FTX.US has now emerged to be the most liquid cryptocurrency exchange in the U.S. This comes after the exchange implemented strong marketing strategies, including buying advertisement spots during last year’s Super Bowl.

FTX.US is an affiliate of the global FTX International exchange headed by the CEO, Sam Bankman-Fried. The latest trading results from the firm depict major growth and outperformance of the competition.

FTX’s financial results for the third quarter of 2021 showed a significant increase in the average daily trading volumes. These trading volumes increased by around 512% to reach around $360 Million.

On September 7, FTX hit a peak in its 24-hour trading volumes, which came in at around $807 Million. Data from CoinGecko shows that the exchange’s 24-hour trading volumes come at around $760 Million.

In the U.S., FTX is the fourth-largest exchange in terms of trading volume. The leading exchanges in the U.S. include Coinbase, BinanceUS, Gemini and Kraken. However, there are many factors by which a cryptocurrency exchange can be measured. In the case of FTX, the exchange has surpassed Coinbase and Kraken in terms of liquidity.

Liquidity is a term in the financial sector that shows how easily a crypto asset can be converted into cash or exchanged for another asset. When a brokerage firm has high liquidity, it shows less risk of being unable to fulfil trades at the ongoing price.

Currently, FTX.US is the most liquid exchange in the United States. FTX also states that it has been the most liquid since the beginning of the year.

Moreover, FTX states that it contributed to around 4.5% of the entire crypto spot market in the US by the end of September 2021. This is a 2% growth quarter-over-quarter.

FTX also touts that the number of users on the platform has increased by 52% between July and September. Some of the reasons that have been attributed to this growth include the trust and support that the exchange has created for its users.

According to the president of FTX.US,

“The trust and support of our user base have allowed FTX.US to become the fastest growing and most in-demand crypto exchange in the US, but we have barely scratched the surface.”

Exchange Expanding Into New Areas

Harrison also noted that the exchange would continue experiencing growth as it improves its existing offerings and expands into new areas. Some of the innovative areas that FTX is targeting include derivatives, NFTs and payment services.

During the third quarter of 2021, FTX announced that it would be launching an NFT marketplace. This comes at a time when other exchanges are looking towards NFTs. Exchanges that are already looking into NFT offerings include Coinbase and Binance.

In August, FTX announced the acquisition of LedgerX. This is a crypto derivatives platform fully regulated by the CFTC. The deal to acquire LedgerX was finalized in October where the derivatives platforms changed its name to FTX U.S. Derivatives.

Harrison noted that this will be one of the most strategic business decisions FTX made to give it a unique position in the U.S. derivatives market. The exchange will now offer fully regulated crypto futures and options to retail and institutional investors with this acquisition.

FTX is also working towards compliance and recently appointed Mark Wejen to head its policy and regulatory strategy. Wejen is a former commissioner with the CFTC.