The industry leader in cryptocurrency exchanges, Coinbase, has announced an increase in the range of products it offers for futures trading. The platform will launch perpetual futures contracts for Avalanche (AVAX) and Solana (SOL) on November 14.
Information About The New Product
Subject to liquidity conditions, the future AVAX-PERP and SOL-PERP markets are scheduled to open on Coinbase Advanced and the Coinbase International Exchange. As perpetual futures don’t have a limitation period like standard futures, traders can speculate on the price movements of underlying assets for as long as they choose.
With this action, Coinbase’s derivative market capabilities are being significantly expanded to provide traders with additional choices in the quickly changing cryptocurrency market.
Because of this limitation flexibility, traders in the erratic cryptocurrency market can take advantage of arbitrage, leverage, and hedging opportunities. However, these contracts also entail risks such as overleveraging and liquidation, necessitating cautious investor management.
Coinbase highlights that it complies with local laws about cryptocurrency derivatives. Consequently, only users in particular non-US regions can engage in perpetual futures trading on the Advanced Trading platform. The regulatory approval that Coinbase International Exchange received in September from the Bermuda Monetary Authority serves as even more evidence of their respect to regulations.
AVAX’s Value Surges
TraderJoe, a famous DEX on Avalanche, experienced a significant 112% increase in trading volume and a 146% increase in fees. The platform’s usage surged, with 74% of trading occurring on the Avalanche chain and 25% on Arbitrum. This growth boosts the network’s vibrancy, attracts more trading, and increases fees, indicating increased trust. The surge in TVL and DEX volumes on Avalanche benefits the network, as it shows more people trust it and can bring more income and fees.
The price of AVAX increased by 9.62% over the previous day due to these favorable factors.