Crypto Derivatives Trading Volumes Up 13 % to $3.12 Trillion in July

Analyst website CryptoCompare reported in its latest report that trading volumes in crypto derivatives saw a monthly increase of 13 % in July, bringing the total volume to $3.12 trillion. This suggests a generally positive outlook for the crypto market, with cryptocurrency prices now showing signs that the worst may finally be behind us.

Full report

According to the agency Reuters, analysts say the derivatives market grew by 3 % in the month. This means that it now represents 69 % of total crypto volumes. As of June, it was 66 %. CryptoCompare also mentioned that the slight increase contributed to cryptocurrency volumes on various exchanges reaching $4.51 trillion in the same July.

Furthermore, in terms of daily maximums, July was better. July's daily high, which occurred on the 29th, saw over $245 billion traded on derivatives exchanges. This represents a nearly 10% increase from June's highest daily high of $223 billion.

Interestingly, however, spot cryptocurrency trading saw a decline in July compared to the previous month. A 1.3 % decline saw spot cryptocurrency trading only increase by a substantial $1.39 trillion in July. And according to CryptoCompare, it has been since at least December 2020.

What caused the surge in crypto derivatives trading volume?

There are at least three reasons why crypto derivatives trading volumes are growing. Recall that the crypto market crashed due to fears of inflation and Federal Reserve interests. This prompted investors to sell off risky assets. And the collapse of Terra undoubtedly played a major role.

However, now that the market is gradually recovering, speculative activities are gaining momentum. Moreover, there is a general belief that the current growth may take some time.

In addition, traders are confident that there will be no US Federal Reserve meeting in August. Not to mention that there are speculative activities based on the upcoming Ethereum blockchain update The Merge. The upgrade is expected to happen sometime in September.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.