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.”

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