Derivative Market Volumes Shine in August: Up by Almost 50% Since July

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • Crypto derivatives contracts worth $711.7 billion were traded last month which is almost 53.6% higher than in July.
  • Binance stood out among all of them in terms of volumes as it spiked to 74%
  • CryptoCompare’s head of research, Constantine Tsavliris said that the hike in trading volumes in August was likely an outcome of the Bitcoin rally that started from the last week of July

Amidst all the fluctuations of the values of major cryptocurrencies, the monthly volumes (as of August) for crypto derivatives have hit an all-time high. It has been reported that crypto derivatives contracts worth $711.7 billion were traded last month which is almost 53.6% higher than in July. Moreover, the recent CryptoCompare’s August 2020 review has suggested that spot volumes spiked by 49.6 per cent since the last month and now amounts to $944.9 billion. This implies that the cryptocurrency derivatives alone contributed an enormous 40% to the entire market shares. 

OkEx, Binance, BitMEX and Huobi Some of the Major Derivatives Platforms in August

Top cryptocurrency derivatives exchanges including Huobi, OKEx, Binance, and BitMEX reported huge spikes in the trading volumes. However, Binance stood out among all of them in terms of volumes as it spiked to 74%. Nonetheless, the above-mentioned crypto exchanges have contributed 90% to the entire derivatives market volumes in August. On the other hand, the bitcoin options of Deribit exchange remained stagnant. However, the derivative options of Chicago Stock Mercantile saw an increase of approximately 8.4% in August. Specifically, CME’s bitcoin futures contracts saw a hike of 36.3%. 

Increasing Volumes Brought About by the BTC Rally

CryptoCompare’s head of research, Constantine Tsavliris said that the hike in trading volumes in August was likely an outcome of the Bitcoin rally that started from the last week of July, where it rose from $9,200 to a high of $12,400. Generally an increase in trading volumes signifies greater cryptocurrency and derivative activities. Previously, the last time when the trading volumes soared this high was back in May which was mainly due to market manipulation by investors ahead of the 3rd Bitcoin halving. 

Increasing Institutional Interest

The derivatives market volumes were also high in March. Back then it was because of the covid pandemic and the sell offs that took place both in crypto and stock markets during lockdowns. However, in the months of June and July the derivatives volumes were  $445 billion and $393 billion respectively. The volatility rates for both the months were abysmal. However, the recent spikes of trading volumes in major derivative exchanges is also an outcome of increasing institutional interest. Four months after halving is generally a significant stage of accumulation for investors.

We Recomaned

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners