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The stabilization of cryptocurrencies led to a collapse in trading volumes

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The stabilization of cryptocurrencies led to a collapse in trading volumes

Stabilization of cryptocurrencies led to a collapse in trading volumes
CONTENT

  • Cryptocurrency trading volumes plummet 53% in June

  • Crypto derivatives trading at record highs

  • Options trading on CME hits record highs

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After some of the best results in May, cryptocurrency trading fell sharply in June. Digital asset prices stabilized in the past month, with trading volumes in the spot market falling by more than 50%. Crypto derivatives fared no better by refreshing 2020 lows.

The stabilization of cryptocurrencies led to a collapse in trading volumes

Smaller exchanges, which saw a 53% m / m drop in trading turnover, felt more negative than their larger peers, according to a new report from analytics platform CryptoCompare..

At the same time, the volume of options trading on CME jumped 41%, reaching a record monthly high.

Also recently, the analytical portal CoinGecko recently published a new quarterly report on the situation in the cryptocurrency market. According to the results of this study, in the 2nd quarter of 2020, there was high activity on the bitcoin network (BTC), and the total capitalization of the crypto market grew significantly, despite the decrease in trading volumes..

The collapse of turnovers in the spot market

In June, the bitcoin rate stabilized, starting the month at around $ 9,460 and ending at around $ 9,215. The decrease in volatility led to a decline in interest from traders, trading volumes in the spot market fell sharply.

On the largest exchanges, trade turnover decreased by 36% to $ 177 billion. The maximum volumes in this category were recorded at $ 9.26 billion on June 11.

Binance confirmed its status as the largest exchange with volumes of $ 41.8 billion, which is 19.6% lower than in May ($ 57.2 billion). OKEx took the second place, and both of these sites are working with a noticeable lead over their smaller competitors. Turnovers on smaller exchanges plummet 53% to $ 466 billion.

The stabilization of cryptocurrencies led to a collapse in trading volumes

Derivatives at 2020 lows

In May, cryptocurrency derivatives experienced a record month in history. TokenInsight Report Shows Average Daily Trading Volumes for Digital Asset Derivatives Exceeded $ 20 Billion.

However, the sector came under pressure in June. Turnover decreased by 35.7% to $ 393 billion, reaching the lowest monthly value since the beginning of 2020.

All cryptocurrency derivatives trading platforms faced a collapse in trading volumes last month, with BitMEX hitting the hardest. The exchange, which is one of the largest players in this segment, recorded a drop in volumes by as much as 50.3%, to $ 51.6 billion.

Despite falling volumes to lows, the derivatives market gained market share last month. The spot market fell 49.3%, while derivatives accounted for 37% of the crypto market, 32% higher than in May.

CME gives hope

At the same time, the interest of institutional investors in the crypto industry continued to grow, and the main confirmation of this was the growth of Bitcoin products on CME. In June, the total volume of options trading on this site reached a record high of 8,444 contracts. The highest daily volume was recorded at 1,061 contracts on June 19.

The stabilization of cryptocurrencies led to a collapse in trading volumes

However, futures trading volumes showed a 23% decline compared to May. Last month, the number of contracts was 128,258. In general, trading volumes on CME decreased by 16.6%.

 

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