TokenInsight: derivatives trading volumes in Q3 increased by 1.7 once a year

In the III quarter 2020 years trading volumes in cryptocurrency derivatives increased by 159% compared to the same period last year.

It may seem to many, that the market of cryptocurrency derivatives is a little “empty” due to the mass hobby of the industry decentralized finance (DeFi). However, according to Tokeninsight experts, in the III quarter 2020 For years, the volume of trading derivatives continued to grow.

After analyzing the data, obtained from 42 trading platforms, Tokeninsight experts came to the conclusion, that the total volume of transactions in the market of cryptocurrency derivatives was $2.7 trillion, What's on 25.1% more, than in the previous quarter, and on 159. 4% more, than in the 3rd quarter of last year.

Since the beginning of the year, the volume of trading cryptoderivists continued to increase, in 4.35 once exceeding the indicators of the spot market. In the III quarter, the derivatives market hesitated greatly, Given the “depressive” mood of market participants in June and in July. The average volume of daily trading in this market was $29.35 billion.  28 July daily trading volume reached its peak – $70.8 billion, What's on $10.5 billion exceeds the record indicator of the previous quarter ($60.3 billion). The lowest volume of daily bidding fell on 19 july, Making $9.3 billion dollars, while the lowest value in the previous quarter was $11.7 billion.

In the III quarter 2020 year, the standard deviation of the daily bidding of derivatives of financial instruments in the entire market was 13. For comparison: Similar indicators for the II and I quarter were 7.92  and 9.86 respectively. This indicates a significant increase in the volatility of the daily volume of trading. At the end of July, trade in derivative financial instruments began to recover. As for the open interest in the cryptocurrency derivatives market, There is also a growth trend.

In the III quarter 2020 Open interest has grown on 30 % – from $5.55 billion to $7.22 billion. According to TokeninSight experts, Investors preferred to maintain assets for a longer period and occupy a wait -and -see position. In this quarter, investors' readers for trade increased, But they still doubt the market fluctuations, which leads to parity between long and short positions.

According to tokeninSight, In the three leaders in the volume of trading of cryptocurrency derivatives were the futures units of the Huobi exchanges, Binance and OKEX. However, due to competition, the total trading volume of derivatives at these three sites was 48%, And in spare trade - 16 %. In the III quarter, the volume of spotal transactions on the Kraken exchange was $22.16 billion, what in 3.6 times its volume of transactions with derivatives of financial instruments. Besides, The volume of transactions with cryptocurrency derivatives on the Bakkt platform increased 352%, And on the Chicago Modern Exchange (CME) - On 80.6%. Researchers Tokeninsight noted, that such data indicate the growing demand for adjustable cryptoderivatics.

TokeninSight analysts also revealed five exchanges, leading in the volume of unlimited contracts in the III quarter 2020 of the year. So, The volume of unlimited cryptocurrencies on Huobi Futures has increased from $125 billion almost before $254 billion, and the share of unlimited contracts increased by 13.7%. A similar indicator of Binance Futures $463.1 billion. However, under the influence of the Defi industry, the dominance of bitcoin contracts weakened. In the III quarter, the volume of contracts on the BTC amounted to 65% from the total volume of derivatives of financial instruments, And in the previous quarter he counted 82%. At the same time, the trading volume contracts for the broadcasts and assets of Defi has increased significantly.

Earlier, Chairman of the Commission for Trade Futures (CFTC) Hit Tarbert (Heath of Tarbert) stated, that adjustable derivatives will increase the market trust in cryptocurrencies. At the same time, the Office for Financial Supervision of Great Britain (FCA) intends to prohibit cryptocurrency derivatives for retail investors, to protect them from losses and market manipulations.