2020 Q1 Cryptocurrency Derivatives Exchange Industry Report
May 13.2020TokenInsight Research
DerivativesQuarterly ReportMarket Analysis
  1. $ 2 trillion: The total volume of Q1 cryptocurrency derivatives in 2020 exceeded $ 2 trillion, an increase of 314% from 2019 four quarters’ average.
  2. $ 62.5 billion: The highest daily trading volume. The average daily trading volume of the entire derivatives market for the quarter was $ 23.3 billion, an increase of 274% over the previous year; the highest daily trading volume was $ 62.5 billion.  
  3. Lower Correlation The correlation between 2020 Q1 derivatives and spot market trading was 0.31, significantly lower than 0.76 in 2019 Q4, indicating that the market participants in the futures market may have been relatively independent of the spot.   
  4. Leading indicators Cryptocurrency futures already have some of the market's leading indicator attributes. Spot investors can refer to futures trading volume for position management.
  5. Major futures pairs only The most liquid and active futures trading pairs such as BTC, ETH and EOS account for more than 90% of the total market turnover. Due to the liquidity and market uncertainties, investors are not recommended to trade non-major futures contract for the time being. Some exchanges (such as Bybit and ZBG, etc.) currently only have launched futures trading on major pairs, which protects investors. 
  6. Steady growth COVID-19 and the oil war have led to the idea that cash is king among the global capital market participants, but the total volume of cryptocurrency futures is still steadily climbing.
  7.  Among the top six derivatives exchanges, Huobi DM and OKEx each occupies roughly 30% of the market share; BitMEX accounts for 20%.
  8. Profit opportunities The market is shaking BitMEX's leading position in the industry, and the market participants can pay close attention to the trend of the outstanding platform token in the industry. Some exchanges (such as Bybit, Bitget, and ZBG) have a high volume of single contract trading, and expect a positive potential development trend.
  9. Early stage In the field of cryptocurrencies, the development of the options market is still in an early stage, and the options trading volume still has a significant gap when compared to futures market.
  10. Business Planning Data demonstrate that after a significant decline in total trading volume, the turnover of the top tier futures exchanges returns to an industry average. When the market shrinks, it is a positive sign for exchanges to expand. 
  11. Compliance Huobi, OKEx, Binance, and Bitget exchanges have obtained the cryptocurrency payment service exemption issued by the Monetary Authority of Singapore.
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DerivativesQuarterly ReportMarket Analysis
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