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Derivative markets hit an ATH in market share in January, as spot volumes fall 30.2%ย  Derivative markets hit an ATH in market share in January, as spot volumes fall 30.2%ย 

Derivative markets hit an ATH in market share in January, as spot volumes fall 30.2%ย 

Last month, crypto spot trading volumes fell to the lowest levels since December 2020.ย 

Derivative markets hit an ATH in market share in January, as spot volumes fall 30.2%ย 

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In January, crypto exchanges saw spot volumes reach their lowest level since December 2020, CryptoCompareโ€™s recent market data analysis report revealed.

While spot volumes fell 30.2% month-on-month, derivatives market volumes remained steady and reached an all-time high (ATH) market share of 61.2%โ€“suggesting crypto investors turned to hedging and speculation.

Spot trading volumes took a severe hit last month

In January, spot volumes on centralized exchanges fell to $1.81 trillion, down 30.2% month-on-monthโ€“reaching their lowest level since December 2020 ($1.17 trillion).

This retraction consisted of a 21.2% drop in top-tier exchange volumes and a 66.3% drop in lower-tier exchange volumes.

According to the report, top-tier exchanges now make up for 90.3% of all spot volumes.ย 

Monthly spot volumes: Top-tier and low-tier exchanges (CryptoCompare)

In January, Binance (trading $504 billion), OKEx (trading $131 billion), and Coinbase (trading $120 billion) were the top players in terms of spot volume.

Monthly spot volumes: Top-tier exchanges (CryptoCompare)

Spot volumes also recorded the lowest intra-month high since December 2020.ย 

Zooming in, the report revealed that daily total spot volume hit an intra-month high of $91.1 billion on January 24thโ€“down 47.5% compared to the previous month.

Derivative markets remain steadyโ€“reach an ATH market shareย 

Meanwhile, derivatives market volumes remained steady and only recorded a marginal decreaseโ€“down 0.4% month-on-month to $2.86 trillion.

Consequently, derivative markets reached an ATH market share of 61.2%, breaking the previous record of 57.3% in November 2020.

The report concluded:

โ€œThis suggests an increase in hedging and speculation in cryptocurrency markets in the month of January, as participants shift to trading futures and options,โ€ย 

However, CryptoCompare noted that January derivatives market volumes remain significantly below the ATHs recorded in May 2021($4.96 trillion).ย 

As for crypto exchangesโ€“Binance dominated the derivative markets in January, with 51.6% of total volumes, followed by OKEx (19.6%) and FTX (12.1%).ย 

Monthly derivatives volume per crypto exchange (CryptoCompare)

Zooming in, the report revealed 1.882 BTC option contracts were traded in the CME in January, up 28.6% month-on-month, reaching the highest amount of BTC options traded since December 2020 (3.749).

CME BTC option contracts: Monthly volumes (CryptoCompare)

Meanwhile, BTC futures contract volumes were up 23.9%, while ETH futures contract volumes increased 59.4%.

CME BTC futures contracts: Monthly volumes (CryptoCompare)
CME ETH futures contracts: Monthly volumes (CryptoCompare)