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The digital currency bear market has now lasted for around 90 days, and Bitcoin (BTC) has been trading in the range of about $17,600 and $25,300 during this volatile period. This has caused the aggregate trading volume of the crypto market to shrink considerably. Despite this, the perpetual futures trading volume has been fairly steady at $1 trillion during Q2 of this year.
During this timeframe, crypto spot monthly trading volume fell to around $0.9 trillion. Notably, the trading volume of futures products started increasing during the bull market that lasted from June 2020 to around March of this year.
Research data released by Tokeninsight shows that the trading volume of the virtual currency market last year was about $112 trillion. Meanwhile, the annual trading volume of perpetual futures hit the $57 trillion mark (around 50% of the total trading volume).
Compared with the overall crypto derivatives trading volume in 2020, it was a rise of more than 355%. It’s also worth noting that the spot trading volume at this time had been around $49 trillion (which is around 41% of the trading volume), with the rest of the trades involving futures and options trading.
With the steady maturity of the virtual currency market, perpetual futures are quickly becoming the most vital trading product in the sector, somewhat like the spot.
This could be the reason why perpetual futures trading is also the primary sector that exchanges are focused on improving. These digital asset exchanges are improving their futures products as well.
For cryptocurrency traders, the key reference point to assess the quality of futures trading is the liquidity of the digital tokens offered by the trading platform. The better the liquidity of the trading platform, the greater the overall depth of its futures products, the narrower the spread, the more seamless the transaction, and the lower the trading cost. The most critical thing is that in the case of major fluctuations in the crypto market, products with greater depth are considerably less likely to face accidental liquidation.
When comparing the contract depth indicators of trading platforms like Binance, Bybit, MEXC, OKX (previously OKEx), Huobi, and Bitget, and looking at the futures trading of the top 50 crypto tokens by market value, it can be confirmed that the leading three platforms when it comes to depth performance are MEXC, Bitget and Binance.
Taking Bitcoin, as an example, during the period from August 4 to September 1 and within the range of 0.05% of the median price, the futures trading depth of BTC_USDT on MEXC rose from $60 million in early August to $100 million.
The contract depth of BTC_USDT on Bitget was approximately $30 million, while the BTC perpetual contract depth of other platforms was significantly lower than that of MEXC and Bitget.
And when we examine the futures trading depth data of ATOM_USDT and LTC_USDT, we find that the trading depths of MEXC, Bitget and Binance are also in the top 3. And in terms of ATOM_USDT futures trading, MEXC reportedly has the best trading depth in the market. The trading volume is reported to be about $375,000, with the highest being around $480,000.
When trading with virtual currencies such as XRP, DOT, LTC, SOL, BNB, within the range of 0.05% of the median price, it can be confirmed that the liquidity of MEXC's futures trading is the best-performing (at the time of writing).
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.