Derivatives trading volume is at least 4.6 times that of spot trading, according to Cointelegraph in 2020. In this trillion-dollar ocean, derivatives trading represented by contracts has grown rapidly since 2020.
Boom in perpetual contracts
According to TokenInsight’s Q1 2021 report, which tracked corresponding transaction data from a total of 51 cryptocurrency exchanges trading perpetual contracts, perpetual contract trading volume reached $14.75 trillion, surpassing the total number of derivatives last year, making perpetual contracts the absolute mainstream product in the derivatives market. The USDT contract with safety custody continued its strong performance and is the most popular contract product in the market this quarter. Its trading volume reached $8.51 trillion in the first quarter, representing 59.4% of the total market volume.
In terms of trading volume of all popular crypto assets, perpetual contracts are close to spot contracts: With a trading volume of $14.11 trillion, the latter were actually slightly worse than the former in the first quarter of this year.
These numbers make it clear that the contract market will see a boom in digital asset derivatives in 2021. The trading volume of the perpetual contract, a more speculative financial derivative, also shows unprecedented levels of activity in the crypto-asset market. Moreover, the USDT contract with collateral custody is irreplaceable as the most demanded contract product by investors in the first quarter of 2021.
Large exchanges with abundant resources and massive funds used to have an overwhelming advantage when moving into new areas, according to CoinEx. However, the product experience, funding rules, deleveraging mechanism, premium distribution and liquidity are closely related to investors’ interests, and users will eventually find that powerful products and professional services are their main concern.
As the market value of crypto assets continues to rise, the market has seen an influx of new investors, traditional financial institutions, and VCs. Demand for financial derivatives such as contracts and options has grown exponentially, leaving plenty of room for growth for derivatives, including perpetual contracts. CoinEx is committed to perpetual contracts and is more focused on improving user experience and asset security, rather than making a reckless move like other exchanges.
To meet the trading needs of our users, we will launch 10 new USDT-M perpetual contracts. The details are listed below:
I. Beginnt at
0:00 September 16, 2021 (UTC)
II. Supported Markets
AVAX/USDT, FTT/USDT, GRT/USDT, MKR/USDT, EGLD/USDT, WAVES/USDT, HBAR/USDT, NEAR/USDT, QNT/USDT, and FTM/USDT
3x, 5x, 8x, 10x, 15x, 20x, 30x and 50x
IV. Risk Warning
As in a normal market, it is convenient to trade Perpetual Contracts without delivery. However, users must be aware that the crypto market is volatile and difficult to predict due to factors such as market dynamics and politics. Users need to control leverage and keep a close eye on market trends and trading risks.
CoinEx will launch more contracts and continue to work on the perpetual contract and derivatives market. Please stay tuned for updates.