CryptoCompare said on Tuesday that centralized exchange cryptocurrency futures trading surged 13% to $3.12 trillion in July as crypto prices recovered from the market crisis.
The futures market accounts for 69% of global crypto transactions, up from 66% in June, and helped propel exchange volumes to $4.51 trillion in July, CryptoCompare claimed.
July 29 derivatives trading reached $245 billion, 9.7% greater than June’s $223 billion peak.
CryptoCompare reported a 1.3% monthly fall in spot cryptocurrency trading to $1.39 trillion in July, the lowest since December 2020.
In May and June, investors fled riskier assets due to inflation and Fed rate rises, crashing the crypto market. After a significant token crash, several cryptocurrency lenders blocked consumer withdrawals, and numerous crypto companies lost workers.
Bitcoin gained 17% in July, partially recovering. It is still far from its November peak of $69,000 at $24,300.
“The rise in derivatives trading volume indicates an increase in speculative activity as traders believe there is room for further upside in this rally,” CryptoCompare stated, adding that August had no U.S. Federal Reserve meeting.
CryptoCompare said that traders are also betting on the September Ethereum merge, which would enhance the network.
Ether rose from $880 in June to $1,900. CryptoCompare reported that spot volumes for bitcoin-to-BinanceUSD transactions overtook bitcoin-to-dollar for the first time in July.
Binance led the exchange market with 54% share, while Atom Asset Exchange (AAX) reached second with volume up 26.5% in July.
Coinbase disclosed a larger-than-expected quarterly loss on Tuesday, with trade volumes more than halving in Q2 2022.