Despite record $6.18T trading volume, crypto derivatives lost market share in March.

Derivatives trading volumes reached a new high of $6.18 trillion in March, an increase of 86.5% over the previous month. For the sixth month in a row, CCData reports that the percentage of market activity attributed to crypto derivatives fell to 67.8% in March.  

In March, crypto futures trading reached new heights, but as a percentage of total market activity, it fell for the sixth month running, according to CCData, a digital assets analytics company located in London.  

The overall market value of all cryptocurrencies was three times the trading activity in cryptocurrency-related futures and options on centralized exchanges, which increased by 86.5% to $6.18 trillion.  

But as more and more traders went to the spot market—where cryptocurrencies are traded for instant delivery—derivatives' market dominance fell to 67.8%, the lowest level since December 2022.  

The largest monthly volume for spot trading since May 2021, at $2.94 trillion, was a 108% increase. The total volume of spot and derivatives trades reached a new high of $9.12 trillion, a rise of 92.9%.  

"The spike in spot trading activity on centralized exchanges coincides with the growing excitement around Bitcoin reaching new all-time highs and the initial signs of returning retail participants in the market," CCData's latest analysis stated.  

Some argue that derivatives are a stand-in for the speculative behavior that typically occurs at large market peaks, cause artificial demand and supply through leverage, and increase market volatility. Therefore, crypto bulls hoping for a sustained price rally can take heart from the fact that derivatives' proportion of overall market activity has been declining.  

The biggest cryptocurrency by market value, Bitcoin {{BTC}}, experienced a 16.6% increase in March, breaking previous records and reaching levels above $73,000, according to data from CoinDesk. In Q1, prices increased by more than 68%. Over the first quarter, the larger market indicator, the CoinDesk 20 Index, increased by more than 50%.  

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