According to CryptoCompare’s January 2022 Exchange Review, the cryptocurrency derivatives market has reached an all-time high in market share of 61.2 percent. Breaking its previous all-time high of 57.3 percent observed in November 2020.
According to the research, the expanding derivatives market indicates a “increase in hedging and speculation in cryptocurrency markets in January, as investors migrate to trading futures and options.”
Crypto spot markets have been pretty tame lately with bitcoin hovering near $37K… volume down ~30% in Jan.
But derivatives (futures, options, etc) have been way more active .. made up 61% of crypto trades last month (up from 52% in Dec)📈 via @CryptoCompare @PowerLunch @CNBC pic.twitter.com/Vxhk6ckSJT
— Kate Rooney ☘️ (@Kr00ney) February 3, 2022
- Derivatives market volumes remain below their all-time highs of $4.96 trillion set in May 2021.
- Binance was the top derivatives exchange in January, accounting for 51.6 percent of the market.
- According to the data, derivatives exchanges exchanged a day maximum of $181 billion on January 21.
- Top-tier cryptocurrency exchanges saw a 21.2 percent decline in trading volume, while lower-tier exchanges saw a 66.3 percent drop.
While spot and derivatives volumes fell, BTC options contracts on the Chicago Mercantile Exchange experienced a 28.6 percent increase in trading volume in January to 1,882 contracts.
