Crypto Trading Volumes Soared in August, With DeFi Taking Center Stage

A summary of the OKEx market microstructure report for August 2020.

After quickly rising above the $10,000 mark at the end of July, the price of BTC traded above $11,000 levels throughout August and printed a year-to-date peak of $12,474 near the middle of the month, as per OKEx’s BTC Index price.

August also saw the total cryptocurrency market capitalization increase by 11% — rising from $350 billion to $389 billion, as per data from CoinGecko. At the same time, BTC dominance lost a huge 5.23% — falling from 61.19% to 55.96%. During this span, the dominance of Ether (ETH) increased by 0.6%.

The increase in cryptocurrency prices during the month of August corresponds to a surge in OKEx’s trading volume. Spot volume rose by 73% when compared to the previous month. Additionally, futures and swap volumes were up 71% and 66%, respectively, from July.

Overall, bid/ask spreads displayed similar levels in terms of mean and variance, except for a few differences. Execution speed has been improved, except for in the coin-margined futures market.

In this month’s summary of the OKEx Market Microstructure Report, OKEx Insights will take a look at trading volumes and trends across the spot, futures and swap markets on OKEx during August 2020.


Spot trading volume and liquidity

In August, spot trading accounted for 429 pairs on the market — 52 more than in July. The total spot trading volume ended at $53 billion after adding 73% from July. In particular, BTC spot trading volume jumped by 33%. Its average daily volume climbed to $519 million. This also shows that altcoins’ trading volumes grew extremely fast in August. Moreover, August’s average ask spread is similar to June’s average. For example, the bid spread when trading $100,000 worth of BTC at spot is recorded at 0.0216%.

NEO and OKB replaced Kyber Network (KNC) and WaykiChain Governance Coin (WGRT) in the top altcoins of the month’s rankings. The Major 6 and top altcoins of the month by spot trading volume were:

  1. Bitcoin
  2. Ether
  3. Bitcoin Cash (BCH)
  4. EOS
  5. Litecoin (LTC)
  6. Bitcoin SV (BSV)
  7. ChainLink (LINK)
  8. NEO
  9. OKB

By the end of August, OKEx added a decentralized finance section on the website — enabling users to easily find information about both spot trading and swaps for DeFi tokens.

Because the decentralized finance sector really took off in August and had yet to reach its September peak, DeFi tokens only accumulated $10 billion in spot trading volume — which accounts for 19% of the overall spot trading volume. Swaps accounted for 7%.

The complete dataset for OKEx’s August DeFi market microstructure report can be downloaded here.

Visit https://www.okex.com/ for the full report.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Crypto Trading Volumes Soared in August, With DeFi Taking Center Stage was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Publication date: 
09/22/2020 - 13:25
Author: 
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