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Mark O'Donnell
 · 
Research Analyst
December 8, 2022
 · 

How much trading volume exists in the crypto market?

  • The trading volume of a coin or token is used to measure the activity of the asset
  • At the time of writing this, the entire trading volume of cryptocurrency is approximately $120 billion.
  • Presently, the crypto derivatives market is about 69% of the total trading volume of cryptocurrency
volume

The trading volume of a coin or token is used to measure the activity of the asset over some time, usually over one trading day. 

Generally, Trading volumes are correlated with crypto prices. When the prices for crypto assets are rising, especially at the abnormal rate that they have demonstrated in the past, their presence in the media also rises, and traders flock to the market in response. A higher trading volume implies more liquidity, better order execution, and a more active market for connecting buyers and sellers. Conversely, when the trading volume is low, it can signify a lack of market interest, and consequently, liquidity and other trading conditions can suffer. 

Trading volume across exchanges 

At the time of writing this, the entire trading volume of cryptocurrency across all exchanges for the day is approximately $120 billion.

The trading volume of cryptocurrencies varies across different exchanges. Several factors are responsible for this disparity, such as the number of users on each exchange and the trading proclivity of these users. The largest exchange, Binance, had a total crypto trading volume of about $35 billion, representing a whopping 25% of the entire trading volume of the market. Smaller exchanges are responsible for the rest of the volume, including OKX (~5%), BingX (~5%), Coinbase (~1%), among others. 

Factors that may impact the volume of trade on a particular exchange include trustworthiness of the exchange and the available number of coins on the exchange. 

volume
Bitcoin 1D, with BTC-Exchange Volume Indictator

The volume of derivatives trading of cryptocurrency 

A Derivative is a contract whose value is determined by an underlying asset. In crypto, a common derivative is CFDs. The trader does not own or hold the underlying asset in derivative trades, which means that getting in and out of trades can be simpler because no cryptocurrency needs to change custodianship. 

Presently, the crypto derivatives market is about 69% of the total trading volume of cryptocurrency, while spot trading has been declining due to the current dip in the crypto market. 

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