Top Binance Margin Trading Pairs by ROI: A One-Month History

A bull and a bear balancing on a board.

Binance launched margin trading on June 11, 2019. Since then, traders have moved quite a bit of money back and forth using this functionality. New margin pairs have been added and the service has been expanded.

Everyone who can access the exchange can now trade digital assets on margin.

The Bitcoin Market Journal team took a look at some of Binance’s margin pairs. The most interesting of these pairs are the ones with decent ROI over the last month.

Unfortunately, the constellation under which the exchange launched them did not favor these pairs ROI-wise.

Almost all of them are altcoin/USDT and altcoin/BTC pairs. Given bitcoin’s increasing market dominance and impressive recent gains, not many altcoins have made progress against it.

Over the last month, the digital asset market as a whole has mostly stagnated against the USD as well.

BTC/USD Holds Its Ground ROI-wise

The BTC/USDT pair is by far the most popular pair for margin trading at Binance. Its 24-hour margin trading volume surpasses all other pairs by an order of magnitude.

That said, BTC/USDT does not have much to show in the way of ROI over the first month of Binance margin trading. Its price went from a little over $13,000 to around $11,800, for a loss of about 9.2 percent.

BTC/USDT pair
Source: Coinmarketcap.com

BNB Rules Its Home Turf

Given the lightning-fast rise of BNB over the last year, BNB/USDT is another interesting margin pair to watch at Binance. The 24-hour Binance margin trading volume of the pair is impressive too. It is only surpassed by BTC/USDT and ETH/USDT.

ROI-wise, the picture is a deceivingly flat one, however. From close to $33, the price of BNB ended up at around $30, for a loss of $3, or 9 percent.

BTC/USDT and ETH/USDT
Source: Coinmarketcap.com

BNB Has Decoupled from BTC

As reflected by the price evolution of the BNB/BTC pair, Binance’s own coin has done well against the top digital asset. In fact, this pair is the only margin trading pair that has managed to log a positive ROI, if you were to stretch the statistics a little bit.

The BNB/BTC price went from BTC 0.00245 to BTC 0.00251 over the time elapsed since the launch of the margin trading feature. The ROI over this period is, therefore, a meager ~2.4 percent.

BNB/BTC pair
Source: Coinmarketcap.com

Litecoin Halving Disappoints ROI-wise

Litecoin has been in the spotlight lately, due to its recent halving. LTC/USDT has been one of the more popular pairs among Binance’s margin traders.

While it has done well YTD, the performance of the pair since the launch of Binance’s margin trading feature has been entirely unimpressive. In fact, the ROI has been negative.

From $119, it is now trading at $86. The negative ROI is 27.7 percent.

LTC/USDT
Source: Coinmarketcap.com

XRP Has Been All Bark, Not Much Bite

XRP/USDT is among the more popular margin trading pairs at Binance as well. That said, it has largely sat out the 2019 rebound of the digital asset markets.

The pair has not performed well in regard to ROI since the launch of Binance’s margin trading either. The same is true for XRP/BTC.

During the mentioned period, XRP/USD slid from $0.3965 to $0.3022. XRP/BTC went from BTC 0.00003142 to BTC 0.00002545.

XRP/BTC
Source: Coinmarketcap.com

Conclusion

It is clear that bitcoin’s 2019 rebound has not triggered an “altcoin season” yet. Since Binance’s margin trading feature went live, the king of digital assets has mostly been treading water too.

Thus, the ROI of margin pairs offered by Binance has mostly been negative. Time will tell if bitcoin’s resurgence and Binance’s margin trading services will provide margin traders with positive ROI in the long run.

Subscribe to the Bitcoin Market Journal newsletter for expert insights regarding the myriad of investment opportunities offered by the digital asset industry.

Comments are closed.