How much digital currency is traded in the derivatives markets?

Recent data show that last month, with falling prices, the share of derivatives markets in total digital currency transactions peaked. According to experts, this change in procedure is a sign that traders are trying to compensate for previous losses.

According to CryptoGlobe, the volume of digital currency transactions in derivatives markets reached $ 2.86 trillion in January, leading to the share of transactions in these markets in total digital currency transactions, the highest level in history. Immediate trade volumes fell 30.2 percent to $ 1.81 trillion.

Derivatives markets include futures, options and margin trading on digital currency exchanges.

Assessing the performance of digital currency exchanges, the CryptoCompire Institute found that in January 2022, digital currency derivatives markets accounted for 61.2% of total trading. Increase your record. Previously, the previous record was the market share of total trade in November 2020 (November), which accounted for 57.3% of the total market.

According to the report, the growing volume of transactions in derivatives markets shows that “in January, investors were more willing to offset past losses and make quarterly transactions by turning to futures contracts and digital currency options.” Despite the growing share of the derivatives trade, the volume of transactions related to these markets is still lower than the record of 4.96 trillion dollars in May 2021 (May).

Read also: What is an option contract? + Video

In January, Bainance, with a trade volume of $ 1.5 trillion, accounted for 51.6% of all derivatives transactions and ranked first in the market. In addition, the OKEx, OKEx and Bybit exchanges ranked second to fourth with $ 559, $ 346 billion and $ 219 billion, respectively.

Last month, the daily volume of trading in digital currency derivatives markets peaked on January 21. That was a high of $ 181 billion, down 3.4 percent from a peak of $ 188 billion in December.

With the decrease in the activity of the immediate markets in January (January), the volume of trade of the high and low exchange offices decreased by 21.2 and 66.3 percent, respectively. In the diagram below you can see this decrease in volume.

Volume of instant transactions on the best exchanges
Monthly volume of instant transactions on top exchanges

The report also adds that the best exchanges now account for 90.3% of total instant trading. Meanwhile, the daily peak of instant trading in January (January) decreased by 47.5% over the previous month and reached 91.1 billion dollars.

The cryptocurrency site’s report shows that despite declining instant and derivative transactions, the volume of Bitcoin trading options on the Chicago Board of Trade increased 28.6 percent in January to 1,882 contracts.

The publication How much digital currency is traded in the derivatives markets? appeared first for currency.

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