While silver inventories on COMEX continue to decline, Binance’s newly launched gold and silver perpetual futures have already surpassed $70 billion in trading volume within weeks.
The sharp convergence across metals and crypto derivatives markets signals surging demand for 24/7 synthetic exposure to precious metals.
Physical Silver Tightens as 24/7 Derivatives Demand Accelerates Across Crypto and Metals Markets
Binance recorded over $70 billion in trading volume across its XAU/USDT and XAG/USDT perpetual contracts.
It points to a strong appetite for always-on, on-chain access to gold and silver price movements. The milestone highlights how traders are increasingly turning to crypto-native platforms to gain exposure to metals without traditional market-hour constraints.
At the same time, physical silver dynamics are tightening. Silver backing futures keep falling, with the March-to-May contract roll reaching 30 million ounces per day. This pace could clear the current open interest.
“At that pace, COMEX is out of silver by February 27,” wrote investment specialist Karel Mercx, adding that from April onward, the market risks a physical shortage unless meaningful inflows arrive in the coming weeks.
The structure of the futures curve adds to the urgency. When adjusting for financing costs such as SOFR (Secured Overnight Financing Rate) and storage, the March–May spread is approaching backwardation. This condition effectively signals immediate demand for physical metal over future delivery.
In carry-adjusted terms, backwardation signals that physical silver is more valuable now than later.
Volatility Surges as 24/7 Trading Reshapes Risk Across Metals and Crypto
Rising futures prices can intensify this dynamic, as higher forward pricing encourages speculative buying. It also prompts producers and holders to retain physical supply in anticipation of further appreciation, pulling additional metal out of the market.
Meanwhile, gold volatility has surged, with its 30-day volatility at its highest level since 2008. The surge reflects heightened macro uncertainty and rapid shifts in positioning across derivatives markets.
The structural shift toward round-the-clock trading is not limited to crypto exchanges. CME Group announced that beginning May 29, crypto futures and options will trade 24 hours a day, seven days a week on CME Globex, pending regulatory review.
CME reported a record $3 trillion in notional volume across crypto futures and options in 2025, citing record-high demand for digital asset risk management.
Year-to-date 2026 data show average daily volume up 46% year-over-year and futures ADV up 47%, reinforcing sustained institutional participation.
The development may also reduce the risk of weekend price gaps. This would allow markets to respond instantly to geopolitical or macro shocks. Notably, the feature is already native to crypto exchanges like Binance.
Taken together, the surge in derivatives activity, accelerating silver inventory drawdowns, elevated gold volatility, and the normalization of 24/7 trading suggest markets are entering a structurally different phase.
As physical supply tightens and financial access expands, traders are positioning for potential scarcity in both metals vaults and digital order books.
