Crypto Market Resurgence: Combined Spot and Derivatives Trading Volume Soars by 19% in July 2024

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As a seasoned researcher with a penchant for all things digital assets and finance, I find myself captivated by the latest findings from CCData’s July 2024 Exchange Review. The report is a treasure trove of insights, catering to both newcomers and veterans in this dynamic market.

The July 2024 issue of CCData’s Exchange Review publication showcases notable patterns emerging in the digital assets sector.

Global leader CCData, an FCA-approved benchmark administrator specializing in digital asset data, caters to both institutional and individual investors with top-tier real-time and historical information. Recognized for its industry knowledge and impartial insights into the digital assets sector, CCData regularly releases the Exchange Review on a monthly basis.

As a seasoned cryptocurrency investor with years of experience under my belt, I have come to rely on comprehensive reports like this one to keep me informed about the latest trends and developments in the market. This report, in particular, stands out for its thorough analysis of exchange volumes, crypto derivatives trading, market segmentation by fee models, and the comparison between crypto-to-crypto versus fiat-to-crypto transactions. I find it especially useful to see how Bitcoin trades against various fiat currencies and stablecoins, as well as rankings of top crypto exchanges by spot trading volume.

In July 2024, there was a notable recovery in the cryptocurrency market. The total trading volume of both spot and derivative transactions on centralized exchanges surged by 19.0%, reaching an impressive $4.94 trillion, as per CCData’s report. This surge represented the first monthly growth in four months, fueled primarily by positive factors like the debut of US-based Ethereum ETFs and favorable statements about Bitcoin from influential US political figures at a conference held in Nashville, Texas, according to CCData’s findings.

In March, centralized trading platforms observed a significant boost in their monthly transactions for both spot and derivative sectors. Specifically, spot trading volumes climbed up by 14.3% to reach approximately $1.44 trillion, while derivatives trading volumes experienced a more substantial rise of 21.0%, totaling around $3.50 trillion. According to CCData’s analysis, the derivatives market accounted for an impressive 70.9% share, which is the highest since December 2023. This surge was driven by traders capitalizing on various market catalysts, causing major digital assets to surge and reach their peak levels last month.

In July, Bybit’s daily trading volume saw a 22.9% jump, reaching an impressive $132 billion, making it the third-busiest month for the platform and cementing its status as the second-largest spot exchange with a 9.18% market share. Binance maintained its top position with a 28.1% market share, although it experienced a slight dip of 4.90% compared to the previous month. In the derivatives sector, Binance remained dominant with a 43.5% market share, while OKX and Bybit trailed closely with 19.0% and 15.1%, respectively. Interestingly, Crypto.com demonstrated remarkable growth in both its spot and derivatives trading volumes, with a 104% rise in the former to $68.9 billion and a 102% increase in the latter to $75.6 billion, according to CCData’s analysis.

The introduction of spot Ethereum ETFs in the U.S. significantly boosted trading activity on the CME exchange. This surge led to a 23.7% rise in derivatives trading volume to an impressive $130 billion, making it the second-highest monthly total of the year. Similarly, CME’s BTC futures trading volume climbed by 24.0% to $101 billion, while ETH futures experienced a growth of 15.0% to $20.7 billion. Notably, options trading on the CME hit a record high, with total volume jumping by 93.6% from June to reach $3.69 billion. This increase was particularly significant in BTC options, which rose by 89.8% to $2.72 billion, and ETH options, which more than doubled to $897 million. These figures suggest that institutions are increasingly interested in the upcoming spot Ethereum ETFs, as reported by CCData.

On the 5th of August, digital currency values saw substantial fluctuations due to worries about the Japanese Yen carry trade and possible worldwide economic recession. The price of Bitcoin dropped to $49,202, representing a 15.4% drop in a single day – the sharpest decline since the FTX crash in November 2022. This increased volatility resulted in a spike in trading action, with centralized exchanges reporting their highest daily spot trading volume since May 2021, when China prohibited Bitcoin mining, according to CCData.

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2024-08-08 11:32