Binance Controlled 30% Of Spot Volume In March: Analysis

Binance controlled 30% of the spot volume trading in March according to the Cryptocompare latest reports that we have in our latest Binance news.

CryptoComapre’s monthly report shows that Binance controlled 30% of the one-third of the total amount traded on the spot platforms in March 2022. The reports from the glboal market real-time data provider CryptoCompare is the total spot market increased by 10.5% in March with a transaction volume reaching $1.6 trillion. The document revealed that about 69% of the total volume was accumulated by 15 of the world’s biggest exchanges like coinbase, Bitfinex, Binance, OKX, Huobi, and FTX.

Binance captured 30.2% of the total spot market volumes and processed about $490 billion in spot transactions with a 15% increase from the February volumes. While the figure is below the exchange’s record market share of 33.7% in 2021 and Binance still managed to dominate the spot market. Binance was followed by Coinbase and OKX and accumulated a spot market share of 5% and 4.75 and Coinbase handled $81.9 billion worth of spot transactions or down by 12% from the value the month prior and OKX with $75.9 billion.

After six consecutive months of decreased volumes, the derivatives marekt witnessed increased activity and the volume saw a major spike in March. As per the crypto compare report, the derivatives volumes increased by 4.5% to $2.74 trillion and amounted to 62% of the centralized exchange volumes with the spot volumes accounting for the remaining 37.2%. despite being impressive for a decreased activity, the derivatives market volumes are lower than the ATH reached in May 2021. the derivatives volumes reached $9.99 trillion during the bull market in 2021 and attained a market share of 68%.

CoinCompare noted that the derivatives market is a recording larger transactions volume that the spot because investors are careful of the risks associated with the spot trading:

“Market participants remain cautious and continue to get crypto exposure through derivatives to hedge and speculate against spot markets.”

Crypto derivatives are secondary contracts that mimic the price of their underlying assets and most investors preferred to take the derivatives contracts since it allows them to diversify their exposure to different crypto coins and protect them from strong price volatility. Binance emerged as the biggest derivatives exchange and led the market with about 52% of the total derivatives volumes with the exchange handling over $1.4 trillion in derivatives transactions with an increase of 8.2% from the February volume.