Crypto Derivatives Volumes Surge To $3.12 Trillion In July, Up 13%

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Crypto Derivatives Volumes Surge To $3.12 Trillion In July, Up 13%

Cryp­to deriv­a­tives vol­umes surge to $3.12 tril­lion in July

Cryp­tocur­ren­cy deriv­a­tives trad­ing on cen­tralised exchanges rose to $3.12 tril­lion in July, a 13 per cent month­ly increase, researcher Cryp­to­Com­pare said on Thurs­day, as cryp­to prices show signs of recov­ery from the recent mar­ket crash.

The deriv­a­tives mar­ket now makes up 69 per cent of total cryp­to vol­umes, up from 66 per cent in June, and helped push over­all cryp­to vol­umes on exchanges to $4.51 tril­lion in July, Cryp­to­Com­pare said.

Deriv­a­tives exchanges trad­ed as much as $245 bil­lion on July 29, 9.7% more than June’s top dai­ly high of $223 billion.

But spot cryp­tocur­ren­cy trad­ing edged low­er to $1.39 tril­lion in July, a 1.3 per cent month­ly decline and the low­est since Decem­ber 2020, Cryp­to­Com­pare said.

The cryp­to mar­ket plunged in May and June as wor­ries about high infla­tion and Fed­er­al Reserve inter­est rate hikes prompt­ed investors to ditch risky assets.

Fol­low­ing the col­lapse of a major pair of tokens, some cryp­tocur­ren­cy lenders froze cus­tomer with­drawals, and sev­er­al cryp­to firms have cut jobs.

Prices have part­ly recov­ered, with bit­coin gain­ing 17 per cent in July. At around $24,300, it is still a far cry from its all-time high of $69,000 in November.

“The rise in deriv­a­tives trad­ing vol­ume indi­cates an increase in spec­u­la­tive activ­i­ty as traders believe there is room for fur­ther upside in this ral­ly,” Cryp­to­Com­pare said, not­ing that there is no U.S. Fed­er­al Reserve meet­ing in August.

Traders are also spec­u­lat­ing on the upcom­ing Ethereum merge, Cryp­to­Com­pare said, refer­ring to an upgrade of the Ethereum net­work which is expect­ed in September.

Ether has risen to around $1,900 from its June low of $880.

BinanceUSD — a sta­ble­coin issued by cryp­to exchange Binance — became more promi­nent in July, Cryp­to­Com­pare said, with spot vol­umes for bit­coin-to-BinanceUSD trades over­tak­ing bit­coin-to-dol­lar for the first time.

Binance held on to the top spot among exchanges, with 54 per cent of the mar­ket share, while Atom Asset Exchange (AAX) became the sec­ond largest, with vol­ume ris­ing 26.5 per cent in July.

On Tues­day US exchange Coin­base report­ed a larg­er-than-expect­ed quar­ter­ly loss, with trad­ing vol­umes hav­ing more than halved in the sec­ond quar­ter of 2022.

Graph­ic: Bit­coin So Far In 2022

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