Share this article
Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January
The numbers suggest speculation, not accumulation, was behind sizable gains for bitcoin and ether, according to a report.
Updated Jan 24, 2024, 12:24 a.m. Published Feb 8, 2023, 4:15 p.m.
Make us preferred on Google
Trading activity increased strongly across the board in January, but derivatives volume grew faster than spot markets, according to data from CryptoCompare.
Derivatives volume in January was up 76.1% from December to $2.04 trillion, the largest percentage increase since January 2021 when volume rose 114%.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Derivatives trading now represents 70.3% of the entire crypto market, up from 68% in December, according to CryptoCompare data.
The large trading activity increase came alongside big gains for the world’s largest cryptocurrencies by market capitalization, with bitcoin (BTC) and ether (ETH) up 40% and 32%, respectively, in January.
“This suggests that price increases were driven by derivative market speculation rather than spot market accumulation,” said CryptoCompare in its report.
With $1.26 trillion in volume, Binance continued as the largest derivatives exchange in January, followed by Bybit which had a 115% increase to $301 billion (the only integrated derivative exchange with triple-digit, month-on-month growth). Bybit recorded its highest-ever market share in derivative markets at 14.6% in January.
Though not keeping up with derivatives, spot markets also witnessed large volume gains in January, with CryptoCompare’s AA- or A-graded exchanges posting a 67% jump in trading activity. Binance, Coinbase and Kraken were the top exchanges in terms of spot volume.
Higit pang Para sa Iyo
More For You
Goldman Sachs' David Solomon says he owns 'very little' bitcoin but watching it closely
“I’m an observer of bitcoin,” Solomon said at the World Liberty Forum on Wednesday, saying he's still trying to understand how it moves.
What to know:
- Goldman Sachs CEO David Solomon said he owns only a small amount of bitcoin but is closely watching the cryptocurrency as part of a broader shift in financial technology.
- Solomon argued that traditional finance and crypto are part of a single evolving system, with tokenization poised to play a central role in future market infrastructure.
- He said Goldman’s limited crypto involvement has been driven largely by what he called prohibitive regulation, warning that excessive rules can drain capital from the financial system even as he urged a thoughtful approach.
Top Stories
