In July, crypto derivatives trading volumes on binary exchanges soared to a six-month high, with trade activity increasing and possibly increasing volatility following recent market volatility.
In July, binary futures trading volume reached $2.55 trillion, the highest level since January Report Crypto analyst JA Marketun Tuesday.
“The increase in volume after the sharp shift in prices of Bitcoin and Altcoins,” he said, referring to Crypto’s high market cap of $4 trillion in history at the end of July.
Other crypto derivatives providers, bybit Analysts say OKX’s activity is also strong, with its volumes of $929 billion and $1.09 trillion, but Binance remains the largest margin, accounting for more than half of the total of all major exchanges.
“The increase in transactions suggests that more users are active again due to the recent price breakout,” the analyst said.
Higher derivatives market participation
Binance is the market leader in crypto derivatives with the highest liquidity and most assets, offering 568 pairs. The current daily trading volume is $82 billion, with the daily selling price of $134 billion on July 18. according to Go to love.
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Higher futures volumes indicate that more derivative traders and institutions are actively participating in the market, which is often associated with significant flows in prices or periods of market uncertainty.
futures The market also plays a crucial role in price discovery, as the increased number means more traders express their views on future prices. Crypto futures are exchange-traded contracts that allow participants to speculate on the future price of assets such as Bitcoin (BTC) or ether (ethereth) does not actually own assets.
Open interest is still high
Meanwhile, the total Bitcoin futures OI (a measure of the total number or value of unresolved open contracts) remains high, at about $79 billion. However, it has been from its High history $88 billion in mid-July, according to Go to coinglass.
When Oi is too high, a leverage flush usually occurs, which can lead to a sharp decline in the spot market.
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