futures volumes – $45 million at last check – equal 42% of its total market capitalization, a possible sign the market is overextended.
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SXP futures is the second-largest futures market on FTX, the only cryptocurrency exchange with SXP futures.
The 24-hour trading volume of SXP futures is only $21 million less than bitcoin, FTX's largest market, and 58% larger than ether futures, its third-largest market.
FTX launched SXP futures on July 13 shortly after Binance acquired the crypto wallet company behind the token.
FTX is the sixth-largest cryptocurrency exchange by open interest, according to CoinGecko.
Swipe futures volume relative to its market capitalization could well be a sign that the market is overextended, said Sam Bankman-Fried, CEO of FTX. Or it could be the market capitalization is just too low, he added.
Swipe's market capitalization is currently $108 million, nearly $300 million smaller than dogecoin's, according to CoinGecko.
Zack Voell is a financial writer with extensive experience in cryptocurrency research and technical writing. He has previously worked with leading cryptocurrency data and technology firms, including Messari and Blockstream. His work (and tweets) has appeared in The New York Times, Financial Times, The Independent and more. He owns bitcoin.