Binance leads the way in crypto derivatives with 51% market share

abdelaziz Fathi

Crypto trading volumes experienced another surge in activity last month as crypto-based derivative products hit new highs in March, according to a new report by Cryptocompare.

FTX

CryptoCompare today published its monthly Exchange Review, which offers widely-quoted insights into the cryptocurrency exchange industry as well as changes to exchanges’ metrics that make up the data provider’s price indices.

Key findings from the March review show that volume on crypto derivatives exchanges rose by 5 percent compared to the previous month, coming in at $2.7 trillion This is a welcomed increase after derivatives markets had seen six straight months of decreased volumes, but was still well below the record of $9.9 trillion set back in May 2021.

In March, derivatives share of the cryptocurrency market rose to just below 63 percent while spot volumes have continued to represent the minority (37 percent) of total market turnover.

Crypto spot volumes also increased by 10 percent to $1.62 trillion in March. This figure includes $1.48 trillion in transactions that exchanged hands at top venues, which account for over 91 percent of all volumes. Spot contract volumes reached a daily maximum of $80 billion traded on March 28.

Binance was the largest spot exchange in March by monthly trading volume with $490 billion, or a market share of 30.2 percent. This figure was marginally below their record market share of 33.7 percent reached in November 2021. Coinbase (5 percent market share) and OKX (4.7 percent market share) followed with $82 billion and $76 billion traded respectively. Coinbase and OKX saw their market share of monthly spot volumes peak at 7.8 percent in December 2017 and 19.8 percent in May 2018, respectively.

Binance also led the way into the derivative markets with 51.6 percent ($1.41 trillion) of total volumes in March. This was followed by OKX (16.3 percent market share, $446 billion) and Bybit (13.9 percent market share, $380 billion).

Options volumes on CME also rise

Spot volumes at what CryptoCompare calls ‘Lower-Tier’ exchanges also soared to $141 billion, up 26 percent on a monthly basis, possibly driven by the hype that accompanied  Bitcoin’s rally.

Trading of options contracts on the Chicago Mercantile Exchange, which focuses on institutional investors, increased by a third in March with 2,223 contracts traded within the month.

However, the regulated exchange said total derivative volumes, as measured by the value of contracts, hit a yearly low at $99 billion in March.

As for previous editions, CryptoCompare’s report includes exchange trade data, news highlights, a market segmentation analysis and metrics of Bitcoin trades against both fiat and stablecoins.

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