Over the last few years, cryptocurrencies have continued to develop and grow. 2019 was a watershed year in this regard as it saw more and more exchanges opening their arms to the crypto derivatives market. In fact, 2019 witnessed record volumes on crypto derivatives exchanges.
Earlier this year, it was observed that BitMEX leveraged over $61 billion worth of trading volume from crypto derivatives and the amount was surpassed again in the following month, with $78.6 billion being recorded. CME did not shy away from recording a high either as the exchange witnessed a monthly volume of $6.6 billion in the same month.
New exchanges offering digital asset futures contracts in the US have also popped up. Earlier this month, LedgerX, a New York-based crypto-exchange, received its derivatives clearing organization license [DCO]. Before LedgerX, CoinFLEX, a Seychelles-based exchange, had also started to engage in crypto futures services back in February.
The interest in the crypto derivatives market is real and it’s growing significantly with every passing day.
Mark Lamb, CEO and Co-founder of CoinFLEX, recently indicated that the market for stop trading of crypto assets was growing at a massive rate, predicting that it might grow by 20 times by the end of 2020. He said,
“The size of the crypto derivatives market will mushroom to 20 times the size of the underlying spot BTC market by the end of 2020, “I think crypto derivatives have been part of an evolution. This is where all the growth is.”
The cryptocurrency market is always tied to extreme volatility and presently, the market is witnessing a slump following a major bull run. However, over the last few months, the cryptospace has grown in terms of receiving validation from major officials, with regulators starting to take serious notice. Keeping that in mind, the aforementioned prediction might bear fruit since virtual assets are irreplaceable at the moment.