Crypto Futures Trading Volume Hits $2.1T, Spiking 314% in Q1 of 2020: TokenInsight Report


As per a recent report titled “2020 Q1 Cryptocurrency Derivatives, Exchange Industry Report” released by TokenInsight, the crypto derivatives market trading volume spiked to 314% in the 1st quarter of 2020 against the fourth quarter of 2019. The report suggested the futures trading volume in cryptocurrency realized $2.1 trillion.

The report further revealed that the trading volume of derivative market in Q1 of 2020 grew by 8 times when compared to the trading volume of first quarter of 2019. The report included futures trading volume from some of the well-known exchanges like BitMEX, KuMEX, Binance, Binance Futures, Deribit, Bitget, Huobi DMJEX, FTX, Gate.io, BFX.NU, Bitz, and OKEx along with several emerging derivative trading platforms.

The report also found that the average daily trading volumes for derivative products skyrocketed by 274% when compared to Q1 of 2019 and the trading volume peaked at $23.3 billion. The researchers behind the study commented,

“We believe the cryptocurrency futures have already possessed some attributes of market-leading indicators, and spot market participants can refer to futures trading volume for position management.”

Futures Trading Volume Correlation With Spot Trading Volume

The study revealed that the associated factor with futures and spot trading volume saw a significant drop and came down to 0.31 when compared to 0.76 registered in the 4th quarter of 2019. Researchers believe that the declined associated factor suggested that the futures trading market participant may have been acting independently of the spot trading market.

The research paper also suggested that when there is a spike in the futures trading volume the spot trading register significant fluctuation. The report explained,

“At this time, investors need to adjust their positions. Besides, in the market downturn, only when the future volume finally shrinks, the market may experience a meaningful rebound.”

Binance Emerges as the Biggest Player in the Futures Market

Binance, the leading crypto exchange by market volume has spread its operational portfolio significantly over the past year and its futures trading platform has emerged as the largest player in the space. Even during the recent market crash on March 12th which is now infamously known as the black Thursday crash saw Binance Futures emerge as #1 amid the sell-off spree.

The Black Thursday crash saw Binance Futures register daily trading volume at a whopping $2.8 billion.which was more than that of major players like BitMEX which registered $2.1 billion in daily trading volume and Huobi with $2.46 billion.

Binance has always maintained a lead in terms of trading volume and even during these troubled times, in the first quarter of 2020, Binance registered its all-time high trading volume which the firm revealed during its token burn event.

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