Crypto Derivatives Volume Soars to $3.12 Trillion in July, Up 13%
CryptoCompare researcher says crypto derivatives trading on centralized exchanges grew to $3.12 trillion in July, up 13% month-on-month, as crypto prices show signs of recovery after the recent market crash.
The derivatives market now accounts for 69% of total crypto volume, up from 66% in June and helped push total crypto volume across exchanges to $4.51 trillion in July, CryptoCompare said. know.
Derivatives exchanges traded as much as $245 billion on July 29, 9.7% more than June’s daily peak of $223 billion.
But spot crypto trading fell to $1.39 trillion in July, a 1.3% monthly drop and the lowest since December 2020, CryptoCompare said.
The cryptocurrency market plunged in May and June as worries about high inflation and interest rate hikes by the Federal Reserve drove investors away from risky assets.
Following the collapse of a major token pair, several crypto lenders froze customer withdrawals and several crypto companies cut jobs.
Prices have partially recovered, with bitcoin up 17% in July. At around $24,300, it’s still far from its all-time high of $69,000 in November.
“The increase in derivatives trading volume indicates an increase in speculative activity as traders believe there is room for this momentum,” CryptoCompare said, noting that there has been no trade. meeting of the US Federal Reserve in August.
Traders are also speculating on the upcoming Ethereum consolidation, CryptoCompare said, referring to the Ethereum network upgrade expected in September.
Ether has rallied to around $1,900 from a June low of $880.
CryptoCompare says BinanceUSD — a stablecoin issued by cryptocurrency exchange Binance — gained more prominence in July, with spot volume for bitcoin-to-BinanceUSD trades surpassing bitcoin as the dollar for the first time. la.
Binance holds the top spot among exchanges, with 54% market share, while Atom Asset Exchange (AAX) becomes the second-largest exchange, with volume up 26.5% in July.
On Tuesday, US exchange Coinbase reported a larger-than-expected quarterly loss, with trading volume having more than halved in the second quarter of 2022.
Graphics: Bitcoin so far in 2022