CryptoCompare published its monthly Exchange Review. In this way, it provides extensive information on the increase in the volume of cryptocurrency derivatives.
In this regard, the key findings of the August review show that the volume of cryptocurrency derivatives increased by 58% compared to the previous month.
In fact, in August, the monthly volume of transactions reached $ 712 billion. Which was enough to break the previous record of $ 602 billion, set in May 2020.
Indeed, most derivative transactions are carried out in Exchanges, which are considered first-level by CryptoCompare.
- Huobi (up 44.7%)
- OKEx (up 69.1%)
- Binance (up 74.0%). They were sold at $ 208.5 billion, $ 190.8 billion, and $ 184.6 billion respectively.
To all this, the cryptocurrency spot volume also increased by 50%, reaching $ 945 billion. In these circumstances, this figure includes $ 529 billion in Exchanges transactions, carried out on the main crypto exchanges, which represent more than 64% of the entire trading volume.
- Binance ($ 124.9 billion, up 83%)
- Huobi was $ 65 billion (an increase of 176%)
- OKEx was $ 64.7 billion (a 47% increase)
Additionally, CryptoCompare’s “bottom tier” exchanges’ spot trading volume also shot up to $ 291 billion. As a consequence, a 30% monthly increase, which may be driven by the hype that accompanied Bitcoin’s rise to $ 12,000.
Importantly, exchanges rated AA to B are considered top tier. While those rated from C to E are considered lower level.
The CryptoCompare report
As in previous editions, the CryptoCompare report includes trading data from Exchanges, news highlights. Also, market segmentation analysis and Bitcoin trading indicators for fiat currencies and Stablecoin.
- BTC to USDT transactions increased 16% in August to 6.25 million BTC versus 5.41 million BTC in July.
- Trading volume in USD and JPY also increased to 1.28 million BTC (up 21%) and 112 BTC (up 26%).
- The euro market increased by 10%.
- BTC to KRW transactions increased 23%.
- The Stablecoin BTC / USDC and BTC / PAX markets traded 72,000 BTC each (up 8%) and 241,000 BTC (up 29%).
Derivatives Volumes Soared to All-Time Highs in May
Similarly, the monthly volume of crypto derivatives increased by a third in May. Reaching a new all-time high of $ 602 billion, according to CryptoCompare.
Also, the new record is slightly higher than the previous record. Which was in March, for $ 600 billion.
If anything, derivatives are becoming increasingly popular and now account for 32% of the cryptocurrency market. Compared to 27% in April.
- Huobi, OKEx, and Binance, combined. They accounted for around 80% of May derivatives volume.
- In percentage terms, CME had the highest monthly increase, with 59%.
- Huobi, cut its $ 7.2 billion in volume. Registering a monthly profit of 29% with $ 176 billion.
It should be noted that volumes in March were also high. Mainly as a result of the pandemic and the consequent global liquidation in the markets.
Basically the most important day of the month, it was the eve of Halving Day, May 10th. Evidently, it saw a large increase in the spot market liquidation to about $ 64.7 billion.
Arguably, derivatives volumes increased 13.2% in July to $ 445 billion. While spot volumes decreased 0.5% to USD 639 billion.
This has resulted in derivatives gaining an overall market share increase of three points to 41%.
Finally, I leave you this phrase from Warren Buffett: “Never be afraid to ask for too much when you sell. Nor offer very little when you buy”.