Crypto Derivatives Surpass Spot Trading
For the first time this year, crypto derivatives (CDs) trading surpassed spot trades at $3.2 trillion. According to the report by Cryptocompare, the total spot trading volumes decreased in June by 42.7% to give CDs trading the top spot. The handwriting on the wall couldn’t be any clearer. CDs trading is on a path of steady growth.
Since the Bitcoin price decline, trading volumes across all crypto markets (spots and derivatives) have also plunged. Spot trading dropped to $2.7 trillion (42.7%) according to Cryptocompare in June. CDs trading volumes also slumped (40.7%), however they were still able to exceed spot volumes for the first time.
The crypto market recently has experienced massive price drops due to several factors, however, the current market dynamics show that traders move towards CDs trading during market volatility, uncertainty and price drops. FUD anyone?
Traders are reducing their spot market activities and shifting towards CDs to mitigate trading risk and try to make gains in the range-bound markets. A sideways price action movement that’s not as easy to trade in spot markets.
CDs generally help you reduce the risks of volatility, or take advantage of it depending on the type of CDs position. It gives you some level of protection against price drops. It can also allow traders to profit by shorting a downtrend market. This explains why traders are opting for them as prices continue to go down, or at least not in a bull trend.
Read more: CDs, The Next Trillion Dollar Wave?
This is why CDzExchange is building the “uniswap for decentralized CDs” to open up greater accessibility for more traders. Opportunity is plenty, but not always in direct reach.
CDzExchange provides a DeFi platform that enables fast and low-cost swaps, liquidity mining, staking, and crypto derivatives trading that leverages the expansive cross-chain DeFi ecosystem.