Derivatives trading rises 46% on crypto exchanges in March
Derivatives trading volume on major crypto exchanges saw a massive increase in March, suggesting bullishness. Spot trading volumes are also on a significant rise.
The crypto market appears to be picking up, as both derivatives and spot trading volumes rose in March. The former in particular had strong growth, rising by 46.8% month-on-month in March. Spot trading volumes rose by 9.6% in the same period.
Derivatives trading on the rise
The data comes courtesy of Wu Blockchain, which released a report on the trading metrics in March. The top three exchanges that saw increased derivatives trading volume were Bitfinex, Deribit and Gate. They rose by 123%, 112% and 66% respectively. For spot trading, the top three exchanges were Gate, Bybit and Bitfinex. These rose by 117%, 113% and 61% respectively.
The report notes that the overall data may be colored by laundering or bot activity. However, the increase in activity is prominent regardless.
Crypto exchanges are seeing something of a resurgence in 2023. This is partly due to the improvement in market conditions, but also because the once major player FTX collapsed.
Crypto exchanges are chasing the derivatives market
Crypto exchanges have been eager to increase their market share as the market becomes more mainstream. The collapse of FTX has only fueled this desire.
With FTX bankrupt, exchanges have looked to the derivatives market to expand their presence. FTX’s absence has left a gap in the market that many entities want to enter, going for centralized and decentralized exchanges. This applies especially given the volatility the market has shown in 2023.
Bitcoin Open Interset Hits All-Time High
Derivatives trading is an important trend of the year so far because of the way the market has moved. Bitcoin is up around 70% since the start of the year, and investors are keen on options and futures. The banking crisis may also draw people towards this trade niche.
Open interest in Bitcoin options rose to an all-time high in March, and this may not be the end of it going forward. Bitcoin continues to hold the world’s attention as it looks stable above $28,000 and has moved past $30,000.
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