Research: Leveraged Crypto Trading Volume Is Decreasing

According to a new report published recently by blockchain research company CryptoCompare, trading volume in derivatives (Leveraged or Futures) markets has decreased significantly after the bankruptcy of the FTX exchange. Based on their most recent on-chain metrics, the researchers found that the leveraged market cap of major exchanges fell 52% to $1.16 trillion in December. Among crypto trading platforms, Binance, which dominates more than half of the market, made $ 720 billion in leveraged transactions in a month.

The volume decline in leveraged crypto markets was not limited to crypto exchanges. Trading volume of crypto-related products on the Chicago Mercantile Exchange (CME), considered the world’s largest derivatives market, fell 49.2% in just one month, falling to the lowest level since October 2020. Derivatives trading volume on the exchange in November was lost, totaling $13.7 billion.

CryptoCompare researchers pointed to FTX as the biggest reason for the decline in derivatives volume in their report. The rapidly rising crypto trading platform of recent years declared bankruptcy in the first days of November. The founder of the exchange, Sam Bankman-Fried, is facing various fraud charges in the US.