The cryptocurrency bear market has now lasted for well over 3 months, and Bitcoin (BTC), the flagship digital currency, has been trading in the range of 17,600 USDT-25,300 USDT during this uncertain period.
This type of activity had led to a decline in the overall trading volume of the virtual currency markets. However, the perpetual futures trading volume has remained fairly steady at $1 trillion during Q2 2022.
Meanwhile, crypto spot monthly trading volume dropped to around $0.9 trillion in Q2. It’s also worth noting that the trading volume of futures products began increasing during the bull market that lasted from around June 2020 to March 2022.
Research shared by Tokeninsight reveals that the overall trading volume of the crypto market in 2021 stood at roughly $112 trillion, while the yearly trading volume of perpetual futures hit $57 trillion (which is notably around 50% of the trading volume).
Compared with the crypto derivatives trading volume in 2020, it was a significant increase of over 350%. In addition to this, the spot trading volume at the time stood at $49 trillion (just over 40% of the trading volume), with the rest of the activity being futures as well as options trading.
With the gradual maturity of the digital currency markets, perpetual futures have become one of the most popular trading products in the industry, just like spot trading.
That’s why perpetual futures trading is also the main sector that large exchanges are focused on improving for a wide range of customers. These virtual currency exchanges are also making enhancements to their futures products.
As explained in the announcement, the main reference point to measure the quality of futures trading is the overall liquidity of the major tokens available via the trading platform. The greater the liquidity provided via the trading platform, the better the overall depth of its futures products, the tighter the spread, the faster the transaction, and the lower the trading cost.
The most important point to note is that in the case of significant fluctuations in the crypto market. To address these issues, it’s quite possible that products with more depth are less likely to experience accidental liquidation.
When comparing the contract depth indicators of trading platforms like Binance, Bitget, Bybit, MEXC, OKX, Huobi, and examining the futures trading of the leading 50 digital tokens by market value, it has been revealed that the top three crypto trading platforms in terms of depth performance are MEXC, Binance, and Bitget.
If we take Bitcoin (BTC) as an example, during the time-period from August 4 to September 1, 2022 and within the range of 0.05% of the median price, the futures trading depth of BTC_USDT on MEXC surged from 60 million USDT in early August to a substantial 100 million USDT.
The contract depth of BTC_USDT on Bitget was approximately 30 million USDT, while the BTC perpetual contract depth of various other platforms has been reported to be considerably lower than that reported by MEXC and Bitget.
And by examining the futures trading depth data of ATOM_USDT and LTC_USDT, we are able to see that the trading depths of MEXC, Bitget and Binance are in the top 3. In terms of ATOM_USDT futures trading, MEXC reportedly has the greatest trading depth. The trading volume is reported to be at about 375,000USDT, with the highest reaching 480,000USDT.
When selecting digital currencies like XRP, DOT, DOGE, LTC, SHIB, SOL, BNB, within the range of 0.05% of the median price, it may be seen that the liquidity of MEXC’s futures trading is presently the best-performing.