Cryptocurrency derivatives trade up 13% in July

Cryptocurrency derivatives trade up 13% in July

ResearcherCryptocurrency derivatives trading on centralised exchanges in July rose to $3.12 trillion, a 13% monthly increase, as the prices of the digital currency show signs of recovery from the recent market crash.

The market for the derivatives market now makes up 69% of total crypto volumes, up from 66% in June, and helped push overall crypto volumes on exchanges to $4.51 trillion in July, according to CryptoCompare.

On July 29, the exchanges traded as much as $245 billion, which is 9.7% more than June's top daily high of $223 billion.

In July, spot criptocurrency trading fell to $1.39 trillion, a 1.3% decline from a month ago, and the lowest since December 2020, according to CryptoCompare.

In May and June, investors ditched risky assets because of concerns about high inflation and Federal Reserve interest rate hikes. After the collapse of a major pair of tokens, some criptocurrency lenders froze customer withdrawals, and several crypto firms have cut jobs.

The price of digital currency gained 17% in July. It is only a far cry from its all time high of $69,000 in November, which is still a far cry from its all-time high of $24,300.

There is no U.S. Federal Reserve meeting in August and traders believe that there is room for more upside in this rally, as the rise in derivatives trading volume indicates an increase in speculative activity, according to CryptoCompare.

Traders are speculating about the upcoming Ethereum merge, which is expected to take place in September, according to CryptoCompare.

The June low of $880 made it about $1,900, and it has gone up to around $1,900.

In July, BinanceUSD, a stable coin issued by Binance, became more prominent, with spot volumes overtaking the dollar for the first time, according to a report by CryptoCompare.

Binance held the top spot among exchanges, with 54% of the market share, while Atom Asset Exchange AAX was the second largest, with volume rising 26.5% in July.

On Tuesday, the U.S. exchange Coinbase reported a larger than expected loss, with trading volumes having more than halved in the second quarter of 2022.

com gfx mkt gkplgolrovbBitcoin.png