Coins: 12,952
Exchanges: 957
Market Cap: $2.378T 1.6%
24h Vol: $216.202B
Gas: 66 GWEI
Go Ad-free
Market Coverage
TABLE OF CONTENTS

Cryptocurrency Derivatives Trading Volumes Fall 24% Lower than Pre-FTX

5.0 | by Julia Ng
 

Derivatives trading volumes for cryptocurrency exchanges fall 24% lower than pre-FTX levels

Since November 14, exchange-traded derivatives volumes have dropped lower than pre-FTX levels, averaging around $305.6 billion in the last 5 weeks, between November 14 to December 12, across cryptocurrency exchanges Binance, Bybit, OKX and dYdX. Comparatively, this is about -24% or $99.1 billion lower than pre-FTX levels in the week of October 3.

A potential reason for the decline in derivatives trading volumes could be that traders have stopped or reduced their activity following FTX’s collapse. It is also common for trading activity to slow down toward the end of year, during the holiday season.

Decentralized crypto exchange dYdX saw a $1.8 billion (1.5X) increase, within a week

FTX was previously the second largest centralized derivatives market, behind Binance. In the early stages after its collapse, other exchanges, particularly Binance, gained market share. However, rumors of Binance being in poor financial health around December 14 have since stirred up fear, uncertainty and doubt—otherwise known as ‘FUD’ by the crypto community—resulting in reports of increased user withdrawals, and Bitcoin prices dropping -9.1% from $18,320 to $16,650, between December 14 and December 16. Some traders who have moved funds off Binance may likely have shifted to trade on decentralized crypto exchange dYdX, explaining its increased volumes.

Between December 5 and December 12, derivatives trading volumes on dYdX climbed ~1.5X or $1.8 billion, from $3.4 billion to $5.2 billion. The average daily derivatives trading volume on dYdX is $738 million, in the week of December 12.

Derivatives trading volumes spiked 46% amid the FTX crisis, but falls 61% the week after

When news of the FTX crisis first broke, cryptocurrency prices fell across the board. This spurred derivatives trading volumes to jump 46.7%, from $581.4 billion in the week of October 31, to $853.1 billion in the week of November 7, as investors hedged positions after the FTX shock. Market participants and retail investors jumped on the opportunity to short the market amid FTX's collapse, resulting in the extreme increase in trading volume.

This spike comes after a 44.7% increase in volumes for exchange-traded derivatives from October 3 through October 31, before the FTX collapse occurred.

98.5% or $840.4 billion of the $853.1 billion derivatives trading volume were from centralized cryptocurrency exchanges. Even with withdrawals paused, derivatives trading was still allowed on FTX – evidenced in the now-defunct exchange contributing 6.2% to total derivatives trading volumes across the top 3 centralized cryptocurrency exchanges and dYdX in the week of November 7. Binance was the largest contributor to the spike, at $547.5 billion (64%), followed by OKX $131.5 billion (15%), then Bybit $108.8 billion (13%).

Methodology

This study examines daily derivatives trading volumes, grouped by week, across the Top 3 centralized cryptocurrency exchanges that offer cryptocurrency derivatives trading, namely, Binance, Bybit, OKX, as well as decentralized cryptocurrency exchange dYdX, from October 1 to December 18, 2022.

Trading volumes for FTX are also included in this study through November 9, 2022. The exchange is now defunct.

If you use these insights, we would appreciate a link credit to this article on CoinGecko. A link credit allows us to keep supplying you with future data-led content that you may find useful.


What are cryptocurrency derivatives?

Cryptocurrency derivatives are financial instruments that allow traders and investors to speculate on the price movements of an underlying cryptocurrency asset or to hedge their positions. Common types of cryptocurrency derivatives include futures, options, and swaps.

A cryptocurrency futures contract obligates the buyer to purchase the asset at a predetermined price on a specific date in the future, while a cryptocurrency option gives the holder the right, but not the obligation, to buy or sell the asset at a predetermined price on or before a specific date. A cryptocurrency swap is an agreement between two parties to exchange cash flows or assets based on the underlying asset's price movements.


Looking for more information on second order effects, post-FTX collapse? Check out this study on how Bitcoin whale addresses on-chain reached an all-year high.

Tell us how much you like this article!
Vote count: 7
Julia Ng
Julia Ng

Julia leads Growth at CoinGecko and is passionate about onboarding more women onto Web3. That said, she is generally poor at timing the market, so she DCAs for safety. Follow the author on Twitter @ngxinyajulia

Related Articles

coingecko
Continue in app
Track prices in real-time
Open App
Select Currency
Suggested Currencies
USD
US Dollar
IDR
Indonesian Rupiah
TWD
New Taiwan Dollar
EUR
Euro
KRW
South Korean Won
JPY
Japanese Yen
RUB
Russian Ruble
CNY
Chinese Yuan
Fiat Currencies
AED
United Arab Emirates Dirham
ARS
Argentine Peso
AUD
Australian Dollar
BDT
Bangladeshi Taka
BHD
Bahraini Dinar
BMD
Bermudian Dollar
BRL
Brazil Real
CAD
Canadian Dollar
CHF
Swiss Franc
CLP
Chilean Peso
CZK
Czech Koruna
DKK
Danish Krone
GBP
British Pound Sterling
GEL
Georgian Lari
HKD
Hong Kong Dollar
HUF
Hungarian Forint
ILS
Israeli New Shekel
INR
Indian Rupee
KWD
Kuwaiti Dinar
LKR
Sri Lankan Rupee
MMK
Burmese Kyat
MXN
Mexican Peso
MYR
Malaysian Ringgit
NGN
Nigerian Naira
NOK
Norwegian Krone
NZD
New Zealand Dollar
PHP
Philippine Peso
PKR
Pakistani Rupee
PLN
Polish Zloty
SAR
Saudi Riyal
SEK
Swedish Krona
SGD
Singapore Dollar
THB
Thai Baht
TRY
Turkish Lira
UAH
Ukrainian hryvnia
VEF
Venezuelan bolívar fuerte
VND
Vietnamese đồng
ZAR
South African Rand
XDR
IMF Special Drawing Rights
Cryptocurrencies
BTC
Bitcoin
ETH
Ether
LTC
Litecoin
BCH
Bitcoin Cash
BNB
Binance Coin
EOS
EOS
XRP
XRP
XLM
Lumens
LINK
Chainlink
DOT
Polkadot
YFI
Yearn.finance
Bitcoin Units
BITS
Bits
SATS
Satoshi
Commodities
XAG
Silver - Troy Ounce
XAU
Gold - Troy Ounce
Select Language
Popular Languages
EN
English
RU
Русский
DE
Deutsch
PL
język polski
ES
Español
VI
Tiếng việt
FR
Français
PT
Português
All Languages
AR
العربية
BG
български
CS
čeština
DA
dansk
EL
Ελληνικά
FI
suomen kieli
HE
עִבְרִית
HI
हिंदी
HR
hrvatski
HU
Magyar nyelv
ID
Bahasa Indonesia
IT
Italiano
JA
日本語
KO
한국어
LT
lietuvių kalba
NL
Nederlands
NO
norsk
RO
Limba română
SK
slovenský jazyk
SL
slovenski jezik
SV
Svenska
TH
ภาษาไทย
TR
Türkçe
UK
украї́нська мо́ва
ZH
简体中文
ZH-TW
繁體中文
Login to track your favorite coin easily 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Forgot your password?
Didn't receive confirmation instructions?
Resend confirmation instructions
IT'S FREE! Track your favorite coin easily with CoinGecko 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Password must contain at least 8 characters including 1 uppercase letter, 1 lowercase letter, 1 number, and 1 special character
Didn't receive confirmation instructions?
Resend confirmation instructions
Forgot your password?
You will receive an email with instructions on how to reset your password in a few minutes.
Resend confirmation instructions
You will receive an email with instructions for how to confirm your email address in a few minutes.
Get the CoinGecko app.
Scan this QR code to download the app now App QR Code Or check it out in the app stores