Crypto derivatives volumes surge to $3.12 trillion in July - CryptoCompare
Cryptocurrency derivatives trading on centralised exchanges rose to $3.12 trillion in July, a 13% 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% of total crypto volumes, up from 66% 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% monthly decline and the lowest since December 2020, CryptoCompare said.
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View Details» 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% 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
