Despite the global market crash of both cryptocurrency and traditional commodities due to the increasing fear of the coronavirus, especially in the past month, the crypto derivatives market still gained significant progress.
Following a report released by CryptoCompare, a digital currency market data provider, crypto-backed derivatives trading of both perpetual swap and futures contracts reached a new all-time high volume last month.
Crypto derivatives market gained $600 billion in March
The crypto derivatives market nailed a total of $600 billion in March. Interestingly, $53 billion from this figure was gained in one day, March 12, which was the same date bitcoin saw tremendous instability in price.
Notably, for the past two years, the crypto-backed derivatives market has been seeing steady growth in trading volumes. The previous all-time high of the market was reported in July last year.
Meanwhile, this type of trading continues to record a higher volume of crypto derivatives trading than any other traditional platforms that support such trades.
Traditional exchanges such as Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) reportedly see a small fraction of these tradings.
Global market meltdown costed $2B
The total value of open derivatives contracts for the Bitcoin futures market had summed up to over $4 billion in the past month. However, the market has fallen to around $2 billion amid the global market meltdown in March, which is considered a very severe crash.
Within 12 and 13 of March, Bitcoin, the world’s most valuable digital currency, saw a very sharp decline in price, losing by almost 40 percent in value. The crypto market was not the only one affected, other traditional markets dropped accordingly.
The Dow Jones Index, S&P500, and gold market also dropped with digital currencies. Following the impact of COVID-19 on the markets, it still remains unclear how worse or better the markets will get, as the world continues to fight against the pandemic.