The 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 looks like it’s picking up, as both derivatives and spot trading volume rose in March. The former, in particular, saw strong growth, rising by 46.8% month-over-month in March. Spot trading volumes rose by 9.6% over the same period.
Derivatives Trading on the Rise
The data comes courtesy of Wu Blockchain, who posted 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 does note that the overall data may be colored by wash trading 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 the market conditions but also because once-major player FTX collapsed.
Crypto Exchanges Pursue Derivatives Market
Crypto exchanges have been eager to grow their market share as the market becomes more mainstream. The collapse of FTX has only precipitated this desire.
With FTX bankrupt, exchanges have looked to the derivatives market to expand their presence. FTX’s absence has left a hole in the market that many entities want to enter, which goes for centralized and decentralized exchanges. This is particularly true given the volatility the market has shown in 2023.
Bitcoin Open Interset Reached All-Time High
Derivatives trading is a major trend of the year so far because of the way the market has moved. Bitcoin is up by about 70% from the start of the year, and investors are keen on options and futures. The banking crisis could also be pulling people towards this trading 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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