Trading volume on centralized cryptocurrency exchanges (CEXs) hit all-time highs in November, with volumes exceeding $10 trillion across spot and derivatives markets, according to a Dec. 3 report by CCData, a crypto researcher.
November marked the first time monthly trading volumes broke $10 trillion, CCData said, adding that CEX volumes increased by more than 100% over the prior month.
“This surge in activity was driven by a shift in market sentiment following the [United States] presidential election earlier in the month,” CCData said in the report.
In November, crypto assets saw massive gains after Donald Trump’s sweeping presidential election win stoked hopes for a pro-crypto US policy overhaul.
“Investors and traders rushed to capitalise on the positive price action of digital assets, with the industry now anticipating a more favourable regulatory environment under the new administration,” the report said.
Source: CCData
Spot and derivative markets
The heightened activity was especially evident in spot crypto markets, with monthly volumes up by nearly 130% to more than $3.4 trillion, according to the report.
“Several spot exchanges including Upbit, Bybit, Crypto.com, Gate.io and Bullish recorded a new all-time high for the monthly volume traded on their respective platforms,” CCData said.
On Nov. 5, shares of crypto trading desk Galaxy Digital rose 25% after Trump’s election win sparked the crypto trading firm’s biggest trading day of the year.
Crypto derivatives markets also saw volumes spike, with month-over-month gains of nearly 90%, taking total trading volumes to nearly $7 trillion, CCData said.
On Nov. 6, Arkham launched a digital assets derivatives exchange. The exchange will reportedly target retail traders and compete with existing platforms such as Binance.
Source: CCData
Impact of crypto options
Crypto derivatives volumes are expected to see further increases as exchanges list options on Bitcoin (BTC) exchange-traded funds (ETFs).
In November, several exchanges — including the New York Stock Exchange (NYSE) and Nasdaq — listed options on BTC ETFs after the Securities and Exchange Commission (SEC) signed off in September.
On Nov. 18, the first day of listing, options contracts on BlackRock’s BTC ETF saw almost $2 billion in total exposure.
Investment managers expect the US debut of spot BTC ETF options to accelerate institutional adoption and potentially unlock “extraordinary upside” for BTC holders.
Options are contracts granting the right to buy or sell — “call” or “put” in trader parlance — an underlying asset at a certain price.
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