Consequences of Bitcoin (BTC) and Crypto’s ‘Black Thursday’ Becoming Clear, According to Coin Metrics

There’s been a shakeup in the crypto futures marketplace in the month and a half since Bitcoin and the rest of the digital asset industry crashed on March 12th.

After “Black Thursday,” BitMEX has decidedly lost some of its futures marketplace to Binance, reports the crypto intelligence firm Coin Metrics.

BitMEX says it suffered two distributed denial-of-service (DDoS) attacks in the midst of Bitcoin’s March crash, which caused 156 accounts to sustain losses as a result of late processing of market orders. The cryptocurrency exchange and derivatives platform has since lost market share both in volume and open interest.

That’s been a boon for Binance which has gained a significant amount of trading volume which has risen to around 25%. Says Coin Metrics,

“This may have an on-going impact across crypto markets, especially considering BitMEX’s outsized influence on price discovery. Only time will tell if BitMEX is able to recover the lost market share, or if the marketplace is undergoing a true changing of the guard.”

Meanwhile, Coin Metrics also notes that stablecoins have continued to thrive in the month and a half since Black Thursday, gaining $1 billion in market cap since the start of the month. That was mostly due to Tether issued on Ethereum (USDT_ETH), which grew from $4.43 billion to $5.14 billion in the first 19 days of April.

Most stablecoins are launched as ERC-20 tokens, but their impact on Ethereum remains a point of contention. Stablecoin growth could increase demand for Ethereum because they require ETH for transaction fees.

Still, over the long term, stablecoins have the potential to take on Ethereum’s role in the crypto space, according to Coin Metrics, by providing some of the same functionality.

“ETH has a credible claim as money within the crypto space, but stablecoins challenge this view. Stablecoins have the potential, due to their lowered volatility, to become the store-of-value, medium of exchange, and unit of account for crypto transactions and smart contracts that need to store value.”

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