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Crypto Spot And Derivative Space Sees $3.3 Trillion In December Volumes

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CryptoCompare, the crypto data provider, had published a new report today. In this report, it shows that the trading volumes, particularly for the crypto-based derivative products, had increased to $1.43 trillion in December, showing a growth of 8.6%.

With this, the crypto derivatives space has witnessed a new all-time high, with the previous ATH having stood at $1.32 trillion in total, which was set just a month prior in November.

Crypto Derivatives And Spot Markets Changing Supremacies

However, in terms of total crypto market representation, the report highlights that the derivative space had actually gone down in that. The space now represents a total of 55% of the crypto space at large, having previously been 60% in November.

There has been some very new trends in the crypto market, however, seeing as more and more sophisticated investors are entering the space. This can be seen in CryptoCompare’s report, showing that investor interest in derivative trading is increasing. Typically speaking, placing bets on crypto prices without actual delivery is a more complex process, so more experienced traders tend to do business in it.

Spot And Derivatives Reaching ATH

CryptoCompare, based in London, found something interesting about the crypto spot volumes, as well. The spot volumes accounted for 45% of the total crypto turnover, but itself had risen up by 30% when compared to the month prior.

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The crypto spot volumes for December 2020 was recorded at $1.9 trillion in total. This counts as just enough to push past the previous all-time-high, recorded in November 2020 as well, which stood at $906 billion in total.

As it stands, Binance took the title of largest derivative exchange for December, boasting a total trade volume of $451 billion. This stands as 12.5% more than what was recorded in November. In second place stood OKEx. While it did have the greatest growth, percentage-wise, going up by 22%, it still amounted to $284 billion in total.

Huobi stands in third place, though it recorded an overall decrease in derivative trade volume by a factor of 7.6%. The firm ultimately recorded $269 billion in crypto trade volume. Bybit is something to make a note of, however, as the exchange reached volumes of $133 billion after seeing an 18% surge.

The Big Players Gaining Most

The December review’s key findings, however, shows in where the crypto trading is happening. The majority of this crypto derivative trading are happening on exchanges that CryptoCompare considers “Top-Tier,” with a total command of $818 billion in total volumes. Month-over-month, this shows that the top dogs have gained 33% more in crypto volumes than in November of 2020.

Now, as for the so-called “Lower-Tier” exchanges, according to CryptoCompare, these exchanges saw a collective month-over-month increase of 24%, going up to $355 billion in total.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.