Derivatives trading skyrockets 46% on crypto exchanges in March

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Derivatives trading volume on major crypto exchanges saw a massive increase in March, suggesting a bullish trend. Spot trading volumes are also up significantly.

The crypto market appears to be recovering as derivatives and spot trading volume increased in March. The former, in particular, saw strong growth, rising 46.8% month-over-month in March. Spot trading volumes increased by 9.6% over the same period.

Derivatives trading on the rise

The data comes from Wu Blockchain, which released a trading metrics report in March. Bitfinex, Deribit, and Gate are the top three exchanges that saw an increase in derivatives trading volume. They increased by 123%, 112% and 66% respectively. For spot trading, the top three exchanges were Gate, Bybit, and Bitfinex. These increased by 117%, 113% and 61% respectively.

Top CEX Spot Trading Volume: WuBlockchain

The report notes that aggregate data can be colored by washout trade or bot activity. However, the increase in activity is significant regardless.

Crypto exchanges are experiencing something of a resurgence in 2023. This is partly due to improving market conditions, but also the collapse of former major player FTX.

Crypto Exchanges Chase Derivatives Market

Crypto exchanges are eager to increase their market share as the market becomes more mainstream. The collapse of FTX only precipitated this desire.

Derivatives dominate the market: Bloomberg

With the collapse of FTX, exchanges have turned to the derivatives market to expand their presence. The absence of FTX has left a hole in the market that many entities want to enter, which goes for both centralized and decentralized exchanges. This is especially true given the volatility the market experienced in 2023.

Bitcoin Open Interset Hits All-Time High

Derivatives trading is a major trend of the year so far due to market developments. Bitcoin is up around 70% since the start of the year, and investors are keen on options and futures. The banking crisis could also attract people to this business niche.

Highest Bitcoin Open Interest Since FTX Crash: Coinalyze

Open interest in Bitcoin options hit an all-time high in March, and that may not be the end of the day. Bitcoin continues to capture the world’s attention as it looks stable above $28,000 and has broken above $30,000.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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