According to a recent study, the commercial volume of cryptocurrency derivatives has recently reached an incredible 300% increase. In addition, the leadership of BitMEX cryptocurrency exchange on derivatives has been seriously shaken, especially after the derivative platforms of crypto exchanges such as Binance and Huobi.
Interest in Derivatives is Increasing in the Crypto Money Market
It is known that the derivatives market is the main reason for the sharp fluctuations especially in the Bitcoin price. The fact that whales can create huge volumes in a very short time with the help of leveraged transactions actually increases the volatility of the cryptocurrency market much more.
The study by Token Insight revealed that the volume of derivatives in the first quarter of 2020 was over $ 2 trillion and increased by 314% compared to the previous quarter. In addition, the listing of many cryptocurrencies in addition to Bitcoin on derivative platforms did not significantly reduce the share of BTC. The report states that BTC’s share in all derivatives platforms is 78%, and leading cryptocurrencies such as Ethereum and XRP did not cause much drop in market share.
However, listing more cryptocurrencies in derivatives exchanges will cause the share of BTC to decrease.