What the numbers say: A recent report from the crypto data website CoinGecko has shown thatcrypto derivatives trading has become a rising trend in the crypto market within the last two quarters. Crypto derivatives exchanges closed the first three-month period of the year with a 74.76% market share by reaching $2.95B in trading volume against the combined 25.24% market share of centralized and decentralized exchanges. The figure accounts for a jump from crypto derivatives exchanges’ $1.15B trading volumes at the end of the previous quarter and a new peak for the six-month period.
Details: Binance held its position on the list by remaining the largest crypto derivatives exchange in March, with an overwhelming 59.8% market share. The popular crypto exchange maintained its top performance in trading volume among centralized exchanges for the crypto derivatives market, too. On the ranking, Binance was followed by OKX, Bybit, Kucoin, Gate.io, dydx, Huobi, Deribit, Bitmex, and Crypto.com.
Relevance: The massive popularity of crypto derivatives investments and the increased scrutiny by U.S. regulators towards the crypto market have caused many other popular centralized exchanges to jump on the bandwagon and embark on a quest for alternative markets. Coinbase recently launched a new Bermuda-based international derivatives exchange for institutional crypto traders outside the U.S. Gemini also launched a crypto derivatives platform dubbed Gemini Foundation that only caters to non-U.S. users.
Brands that should careThe trend is expected to draw other centralized exchanges, such as Upbit and MEXC, into the crypto derivatives trading.