In December 2024, centralized crypto exchanges set a record for the highest combined trading volumes in spot and derivatives, according to CCData’s latest market report.
The report highlighted a 7.58% increase in overall trading activity, reaching an unprecedented $11.3 trillion. Binance continued its dominance in spot trading, registering $946 billion in volume, reflecting a slight 0.13% growth. Bybit and Coinbase followed closely with $247 billion (up 18.8%) and $191 billion (up 9.62%), respectively.
Crypto derivatives trading saw a significant surge in December, rising 7.33% to reach $7.58 trillion, marking the highest monthly volume in its history.
CCData also noted an increase in liquidations as traders aimed to capitalize on market volatility. This trading frenzy coincided with Bitcoin’s historic rally, which surpassed $100,000 for the first time on December 5, reaching a peak of $108,249 on December 17.
December also saw a sharp $1 billion liquidation on December 20, as Bitcoin dropped 3.5% from its $100,000 mark. The decline followed remarks from Federal Reserve Chair Jerome Powell, indicating no urgency to reduce interest rates.
Meanwhile, Bitcoin’s perpetual swap open interest remained stable during year-end expirations, contrary to expectations of significant price swings. Traders exercised caution and avoided heavy reliance on perpetual contracts for hedging, resulting in steady open interest amidst low volatility. The implied volatility term structure showed one-week volatility at 57%, with options trading five points lower. Expired open interest has not been reinvested, leading to a neutral call-put balance and limited leverage compared to early December 2024.
Similarly, Bybit’s latest derivatives report reveals contrasting trends in the Bitcoin and Ethereum options markets. Bitcoin’s open interest is rebalancing post-December expirations, while Ethereum is experiencing increased call option demand. Despite stable markets, Bitcoin’s implied volatility is at 57%, indicating heightened risk. Economic factors have slowed cryptocurrency trading, with December seeing reduced activity and cautious strategies reflected in steady open interest in perpetual swap markets.
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