Swipe (SXP) futures volumes – $45 million at last check – equal 42% of its total market capitalization, a possible sign the market is overextended.
- 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.
- SXP volumes signal cryptocurrency traders’ increasing interest in cryptocurrencies with low market capitalizations as bitcoin continues to trade in a tight range above $9,000.
- 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.