By
Steve Muchoki
April 25th, 2024
According to a report, the monthly CME future contract volume surged by 36.3% to record 203,867 contracts traded from July 2020. Binance was identified as the largest exchange based on the recorded volumes.
The crypto-based derivative products recorded an all-time high in August according to the monthly exchange review report published by CryptoCompare. The review which basically captures the changes in the exchanges’ metrics and the overall performance of the crypto exchange industry established that the top tier exchanges dominated in trading volume with the CME derivative volume surging In the month under review.
Derivative Volume
Derivative was reported to comprise 40% of the total market shares as previously known, however, its volume recorded an incredible run to reach $711.7 billion, rising by 53.6% in August. In addition, there was a 49.6% increase in the total spot volume with $944.9 billion as reported by CryptoCompare.
According to the report, the monthly CME future contract volume surged by 36.3% to record 203,867 contracts traded from July 2020. The CME cryptocurrency derivative volume recorded $12.02 billion in August having surged by 55.7%. Derivative exchanges dominated in terms of trading volume with Binance recording $184.6 billion (up 74%). OKEx had $190.8 billion (up 69.1%) with Huobi following with $208.5 billion (up 44.7%) (order in terms jump).
Crypto Spot Volume
The crypto spot volume pulled an amazing performance with what was termed as “top tier exchanges” dominating the market. Volumes of top tier exchanges surged to $529 billion after rising by 58.3% from July. This is a representation of 64% of the total volume compared to its previous 60%. As reported by CryptoCompare, the lower tier volume recorded a 30.2% increase from July to reach $291 billion.
Binance was identified as the largest exchange based on the recorded volumes. It had a trading volume of $124.9 billion (up 83%). Huobi had $65.0 billion tradings (up 176%) behind Binance. OKEx also reached $64.7 billion trading (up 47%). Coinbase was listed with $21.3 billion (up 101%) of trading volumes in August with Liquid recording $9.9 billion (52%). Binance, OKEx, and Huobi represented about 74% of the total volume among 15 exchanges. In July, these three exchanges showed 63% of the total volume.
Fee Charging Exchanges
The report estimated that fee-charging exchanges recorded an increase in total volume traded by 50.13% since July with a total of $685 billion. Exchanges with Trans-Fee Mining implementation recorded 53.94% from July to a total of $125 billion in August. Crypto exchanges that charge traditional takers fees according to the report represented 84% compared to 82% (in July) in the total exchange volume. Those with the implementation of TFM represented below 16%.
BTC trading into USD increased by 21% to 1.2 million, BTC with JPY rose by 26% to 1.12 million. Bitcoin trading into USDT was up by 16% to $6.25 million BTC compared to 5.41 million in July. The BTC/USDT pair recorded the most BTC traded into stablecoin or fiat with a proportion of the total volume of 65% in August compared to 66% in July according to the report.
According to Constantine Tsavliris, the head of research at CryptoCompare, the August surge of Bitcoin from $9,200 to $12,400 was the underlying reason for the surge in crypto derivatives volume.