Crypto-Settled Derivatives Make Up A Higher Percent Of Trading Than Ever Before

Crypto-Settled Derivatives Make Up A Higher Percent Of Trading Than Ever Before
Volumes on crypto-settled derivatives platforms dwarf those on spot exchanges
Crytpo and Bitcoin Market Cap Story of Day

Crytpo and Bitcoin Market Cap Story of Day

CRYPTO MOVERS AND PRICES

 

 

CRYPTO STORY OF THE DAY

Spot Exchanges Continue To Post Some Of The Lowest Volume Readings Of The Year - While Activity In The Space Is Generally Depressed, Crypto-Settled Derivatives Make Up A Higher Percent Of Trading Than Ever Before

Crypto Takeaway: This weekend, in spite of some volatility, physical crypto saw some of the lowest activity levels of the year. For a 24-hour period, Bitfinex (BFX), for example, posted volume of less than 50M, which is only 1/3 of an already hyper-depressed 30-day average. For reference, during the June rally, the venue frequently saw 24-hour periods of more than 600M in total volume traded.

While activity is generally lower, volumes on crypto-settled derivatives platforms dwarf those on spot exchanges. According to The Blockchain Transparency Institute, the Top 10 'verified' spot exchanges were responsible for just over 1B of activity in the last 24-hours. According to skew.com, crypto-settled derivative platforms saw nearly USD 6B equivalent of activity in that period. Furthermore, at the end of October, when the Top 10 verified spot exchanges were posting volumes in the range of 2B, the derivative platforms saw ~25B in 24-hour activity.  Ultimately, while volumes are lower, crypto-settled derivative platforms are now the key to monitoring speculative interest in the space. 

About the Author

FRNT Financial is an Institutional Brokerage which offers clients a variety of products along with research & analytics in the crypto-space.