Crypto Derivatives Trading Volume Plunges in December As Sector Reckons With FTX Fallout: Report

A new report from blockchain market data provider CryptoCompare shows a massive decline in crypto derivatives trading activities last month following the collapse of industry giant FTX in November.

In its latest Exchange Review, CryptoCompare reports that derivatives volumes dropped by 52.7% in December to $1.16 trillion.

Crypto exchange titan Binance, which takes 62.7% of the market share, recorded $726 billion in derivatives volume, down by 50% from November.

“Derivatives exchanges traded a daily maximum of $64.7 billion on the 16th of December, down 78.0% from November’s intra-month high of $295 billion.”

Crypto-related trading volume on global derivatives marketplace Chicago Mercantile Exchange (CME) is also down by 49.2% to $14.2 billion in December, the lowest since October 2020.

The volume of Bitcoin (BTC) futures traded on the exchange plunged by 48.3% to $13.2 billion. CME’s Ethereum (ETH) futures saw an even bigger drop with a 55.3% plunge to $481 million, the lowest since March 2021.

The steep drop in trading volume comes as the fallout of the Bahamian-based crypto derivatives exchange FTX in November exacerbates the volatility in the digital assets market.

“To conclude, in December, cryptocurrency exchanges saw a sharp decline of 51.4% in volumes across both derivative and spot markets. This  coincides with the loss of users’ trust in centralized exchanges following the collapse of FTX in November, leading investors to take a cautious stance amid concerns over further contagion.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Leave a Reply

Your email address will not be published. Required fields are marked *