Market Crash Led To Largest Cryptoasset Daily Volume
The massive market crash on March 12th-13th saw daily volumes hit $75.9bn in a single day (13th March) – the single greatest daily volume recorded in cryptoasset history.
Most of this figure came from lower-tier exchanges ($54.3bn), with volume from Top Tier exchanges totalling $21.6bn (28.5%) – one of the highest Top Tier volumes recorded.
Spot Volumes Have Surged in Q1 2020
Since December 2019, volumes from Top Tier exchanges have continued to increase month on month. In March, volume from many of the largest Top Tier exchanges increased 35% on average (vs February).
Derivatives Volumes Hit All-Time High in March 2020
Derivatives volumes totalled $600bn in March, up 5% since February. The largest derivatives players include OKEx, BitMEX, Huobi and Binance, with these four representing a combined $514bn (86% of the derivatives market for March).
Newer Derivatives Exchanges Binance and FTX Saw Volumes Soar
Binance and FTX saw monthly volumes surge 27% (to $95.8bn) and 94% (to $35.8bn) respectively in March. Binance and FTX initially together represented 14% market share in January, but now represent approximately 22% in March.
Institutional Derivatives Volumes Plummeted
Institutional appetite for derivatives products appeared to decline rapidly following the BTC crash, with CME losing 44% of volume compared to February. Trading volumes totalled $7.36bn in March compared to $13.1bn in February.
Firms are bridging the gap between traditional finance and the crypto ecosystem.
Some cryptoassets would be subject to a new conservative prudential treatment.
There are risks to the banking system in the absence of a specified prudential treatment.
The extension allows cryptoasset firms to trade while the FCA continues assessments.
Coin Metrics provides network data, market data, indexes and network risk solutions for cryptoassets.