Volumes of Crypto derivatives trading in Binance Exchange advanced to six-month highs in July, the sign of increasing trading activity and potential more volatility in avoiding recent swings in the market.
Binance futures volumes hit $ 2.55 trillion in July, the highest level since January, reported Cryptoquant analyst Ja Marketun on Tuesday.
“The jump in volume followed a month of sharp moving prices in both Bitcoin and Altcoins,” he said, referring to the whole-time capitalization of crypto $ 4 trillion returning to the end of July.
Other Crypto derivatives gives, Bybit And OKX, also has a strong activity, with $ 929 billion and $ 1.09 trillion in volume, but Binance remains the largest by a wide margin, forming more than half of the total volume in all major exchanges, the analyst said.
“The trade increase suggests more users are active again, perhaps because of the recent price breakout,” the analyst said.
Increased participation in the derivative market
Binance is a market leader for crypto derivatives with the highest liquidity and most of the owners, offering 568 pairs. The current daily trading volume is $ 82 billion, and it hits a four-month daily high $ 134 billion on July 18, According to In coingecko.
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Higher volumes of futures indicate more derivatives that entrepreneurs and institutions are actively participating in the market, and they are often associated with periods of significant price movement or market uncertainty.
Futures Markets also play an important role in price discovery, as increasing volume means more traders express their views on future prices. Crypto futures are contracts exchanged by the exchange that allow participants to think of the future price of an asset such as Bitcoin (Btc) or ether (Eth) without real ownership of property.
The open interest remains high
Meanwhile, the total futures of Bitcoin Oi (a scale of total number or amount of open contracts that have not been repaired) remains high around $ 79 billion. However, it fell from its its All times high of $ 88 billion in mid -July, According to In coinglass.
When the OI gets too high, it is often followed by a leverage flushout, which can cause sharp drops in place markets.
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