Both Bybit and OKX, which are other cryptocurrency derivatives providers, witnessed strong activity with trading volumes of $929 billion and $1.09 trillion, respectively.
The analyst predicted that the recent rise in prices is the reason behind this increase in trading activity.
The cryptocurrency derivatives trading volumes that reached their highest levels in six months in July on the Binance platform, following recent market fluctuations, indicated notable increases in trading activity and the potential for market volatility.
The highest trading volume for Binance futures since January was $2.55 trillion in July, according to analysis by crypto quant analyst J.A. Martin on Tuesday. He added that this increase in volume came after a month of significant price changes for both Bitcoin and altcoins, noting that the cryptocurrency market cap declined from its all-time high of $4 trillion at the end of July.
Increase in trading activity
Both Bybit and OKX, which are other cryptocurrency derivatives providers, also saw strong activity with trading volumes of $929 billion and $1.09 trillion, respectively. However, according to the researcher, Binance dominated the market, accounting for over 50% of the total trading volume across all major exchanges. The analyst predicted that the recent sudden spike in price is the reason for this increase in trading activity.
With 568 cryptocurrency pairs available, Binance offers more assets than any other cryptocurrency exchange and enjoys the highest liquidity among cryptocurrency derivatives platforms. The current daily trading volume is $82 billion, according to CoinGecko, having reached a four-month high of $134 billion on July 18.
When there are significant price fluctuations or a state of market uncertainty, the futures market tends to increase trading volumes, meaning more derivative traders and institutions are involved. Another important factor in price discovery is the futures market, where a larger number of traders express their expectations for future prices through higher trading volumes. Without actually owning the assets, cryptocurrency futures investors may bet on its future price through exchange-traded contracts.
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