Binance Futures Volume Hits $2.55 Trillion in July Amid Market Volatility

• Bybit and OKX, two other crypto derivatives providers, also saw robust activity, with $929 billion and $1.09 trillion in volume, respectively.
• The analyst speculated that the recent price breakthrough may be the cause of the uptick in trading activity.

Significant increases in trading activity and potential market volatility were indicated by the six-month highs in July crypto derivatives trading volumes on the Binance exchange, after recent market swings.

The greatest level of trading volumes for Binance futures since January was $2.55 trillion in July, according to CryptoQuant analyst J.A. Maartun’s analysis on Tuesday. The rise in volume followed a month of significant price changes in both Bitcoin and altcoins, he added, mentioning how crypto’s market capitalization fell down from its all-time high of $4 trillion at the end of July.

Uptick in Trading Activity

Bybit and OKX, two other crypto derivatives providers, also saw robust activity, with $929 billion and $1.09 trillion in volume, respectively. However, according to the researcher, Binance dominated the market, accounting for over 50% of the total volume across all major exchanges. The analyst speculated that the recent price breakthrough may be the cause of the uptick in trading activity.

With 568 pairings available, Binance offers more assets than any other cryptocurrency exchange and has the most liquidity among crypto derivatives. The current daily trade volume is $82 billion, according to CoinGecko, and it reached a four-month high of $134 billion on July 18.

When there is a lot of price fluctuation or market uncertainty, the futures market tends to see higher volumes, which means more derivatives traders and institutions are involved. An further important factor in price discovery is the futures market, where a larger number of traders are voicing their expectations for future prices via higher trading volumes. Without actually possessing the assets, investors in crypto futures may bet on their future price via exchange-traded contracts.

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