Derivatives Market Share Hits Record in January, Spot Volume Down 30%

Crypto exchanges hit their lowest levels since December 2020 in January. Report Current market data analysis by CryptoCompare. While spot volume declined 30.2% month-on-month, derivatives market volume remained stable, hitting an all-time high of market share (ATH) at 61.2%. This shows that crypto investors are turning to hedging and speculation.

Spot Trading Volume reduction seriously last month

In January, cash volume on centralized exchanges fell to $1.81 trillion, down 30.2% month-on-month and hitting the lowest level since December 2020 ($1.17 trillion).

The high-level exchange volume fell by 21.2% and the lower-end exchange volume by 66.3%.

According to the report, high-level exchanges currently account for 90.3% of the total spot volume.

Monthly Spot Volume: High and Low Prices | Source: CryptoCompare

In January, the top exchanges in terms of cash volume were Binance ($504 billion traded), OKEx ($131 billion traded), and Coinbase ($120 billion traded). .

Monthly Spot Volume: High-Level Exchanges | Source: CryptoCompare

Spot volume also posted its lowest monthly high since December 2020.

The report revealed that total daily spot volume hit a monthly high of $91.1 billion on Jan. 24 — down 47.5% from the previous month.

The futures markets remain stable, record market share

Meanwhile, the volume of the derivatives market remained stable, only declining slightly — down 0.4% mom to $2.86 trillion.

As a result, the market share of derivatives reaching ATH is 61.2%, breaking the previous record of 57.3% in November 2020.

“This indicates an increased hedging and speculative bias in the crypto market in January as participants turned to futures and options trading.”

However, CryptoCompare notes that the derivatives market volume in January is still significantly lower than the ATH recorded in May 2021 ($4.96 trillion).

The Binance exchange dominated the derivatives market in January, accounting for 51.6% of the total volume. Followed by OKEx (19.6%) and FTX (12.1%).

Monthly volume of derivatives per exchange | Source: CryptoCompare

Further analysis revealed that 1,882 BTC options contracts were traded on the CME in January, up 28.6% month-on-month and hitting the highest number of BTC options contracts traded since December 2020 (3,749).

BTC options contract Above CME: Monthly Volume | Source: CryptoCompare

Meanwhile, BTC futures volume is up 23.9% and ETH futures volume is up 59.4%.

BTC futures contract Above CME: Monthly Volume | Source: CryptoCompare

ETH futures contract Above CME: Monthly Volume | Source: CryptoCompare

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