Brian Armstrong, CEO of Coinbase Global Inc. (NASDAQ:COIN), cheered the addition of XRP (CRYPTO: XRP) and Solana (CRYPTO: SOL) to its perpetual futures offering on Tuesday.
XRP, SOL Perpetual-Like Contracts With Up To 5x Leverage
Armstrong called the addition a “great progress” that will enable U.S. traders to bet on SOL and XRP perpetual-style futures, following the launch of a similar offering for Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) last month.
Unlike traditional futures, which have a monthly or quarterly expiration date, Coinbase’s perpetuals set expiration dates of 5 years. Moreover, the contracts are open for trading 24/7.
While BTC and ETH perpetuals give up to 10x leverage, XRP and SOL contracts provide up to 5x leverage.
See Also: $420 Million Wiped Out In 20 Minutes — What The Inflation Shock Reveals About Bitcoin, Ethereum
The Sheer Dominance Of Perpetuals
Perpetual futures contracts, or "perps," are derivatives that allow traders to speculate on cryptocurrency prices without an expiration date. In this regard, Coinbase’s offerings are not truly perpetual.
According to CoinMarketCap, perpetuals accounted for 99% of global cryptocurrency derivatives trading volumes in the last year.
The latest announcement follows Coinbase’s launch of 24/7 Bitcoin and Ethereum futures trading in May, marking the first time a CFTC-regulated exchange in the U.S. offered around-the-clock access to leveraged crypto derivatives.
Price Action: Coinbase shares fell 0.69% in after-hours trading after closing 5.82% lower at $302.07 during Tuesday’s regular trading session, according to data from Benzinga Pro. Year-to-date, the stock has gained 21%.
XRP traded down 4.21% to $2.89 at last check, while SOL was up slightly by 0.29% to $180.73.
As of this writing, COIN ranked high on Growth, an indicator of a stock’s combined historical expansion in earnings and revenue across multiple periods. Visit Benzinga Edge Stock Rankings to compare it to the highest-weighted stock in your portfolio.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
