The global crypto derivatives market has taken great strides in 2020. Growth in demand for crypto derivatives has been undeniable, with March setting record volumes. Crypto derivatives saw their highest trading volumes ever, according to a report from CryptoCompare. This record setting month came as global markets fell following the economic impacts of COVID-19.
Here are some key takeaways from the recent CryptoCompare report:
- Derivative volumes totalled $600 billion in March
- The largest derivative players include OKEx, Bitmex, Huobi and Binance with these four representing a combined $514 billion (approx. 86% of the deriatives market in March)
- The vast majority of derivatives trading continues to occur on crypto exchanges, rather than traditional exchanges like the CME (Chicago Mercantile Exchange)
Large institutional incumbents continue to enter the market introducing new institutional products. Throughout the last few months we have witnessed the infrastructure for mainstream institutional adoption continue to be set, and the growing derivatives market will make it difficult for institutions to turn their back on this asset class.
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